Mortgage scam victims speak out

A nutritionist, mortgage broker, real estate agent and office receptionist told how they were all victims of the mortgage ramping scam run from a Mt Albert real estate office.

Three former Barfoot & Thompson agents face losing their sales certificates after falsely inflating house values by using the illegal scheme of "hydraulicing" or jacking up prices.

This week the Real Estate Institute brought its case against former Barfoot agents Philip Cavanagh, Raghu Aryasomayajula and Philip Niall. Only Mr Niall appeared at the inquiry in Newmarket.

BNZ, ANZ and Westpac all loaned money on the many properties involved and participated in the scheme by loaning far more than the properties were actually worth.

The Real Estate Agents Licensing Board this week heard from four people left owning properties they did not intend to buy, forced to sell places at huge discounts, and how they suffered financially from the scam.

The board reserved its decision.

The four victims have suffered losses to the tune of about $2 million.

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