Defendant sentenced in mortgage fraud prosecution
A defendant in the SFO’s investigation into alleged mortgage and investment fraud has been sentenced at the North Shore District Court. Francis John Peters, who no longer has name suppression, was sentenced to nine months and two weeks home detention.
Mr Peters entered guilty pleas in April this year, to three charges of obtaining credit by deception and one charge of obtaining property by deception. The charges relate to a $1,350,000 loan obtained from Westpac for the purchase of a property in Auckland.
SFO Director Karen Chang says, “Price ramping and mispresenting income, equity and payment of a deposit are well-known forms of mortgage fraud. In this case there was clear planning and a high degree of premeditation underscoring the complex tactics often employed by professionals who facilitate fraud.”
Francis Peters is a lawyer and was working as one at the time of the offending. He made false representations to the bank about the purchase price and about receiving a cash gift contributing equity to the purchase. He also lied about having no other borrowing or debt.
Mr Peters also agreed that another defendant would make a false representation to conveyancing solicitors that a deposit had been paid when it had not, causing a solicitor’s certificate to be issued to the bank which would otherwise not have been.
The SFO says Francis Peters committed these offences together with his brother Gerard Peters and mother Serene Peters, and another defendant who currently has name suppression.
Ms Chang says, “Such actions, especially as a lawyer, undermine trust in our financial and legal systems, highlighting the importance of the SFO's focus on cases involving professional enablers. By addressing these breaches of trust, we are committed to safeguarding New Zealand’s economic and financial integrity from those who exploit their professional status for criminal gain.”
The SFO has charged a total of six people in this case. The trial of two of Mr Peters’ other brothers, Christopher Peters and Robert Peters, and one other defendant with name suppression is currently scheduled for February 2026. A trial date has not yet been set for the remaining two defendants, Gerard and Serene Peters.
More information
For further details about the case see our previous releases and case history timeline:
- Latest defendant named in mortgage and investment fraud prosecution(external link) (7 August 2024)
- Defendant pleads guilty in mortgage fraud scheme(external link) (30 April 2024)
- Case history timeline(external link).
About the SFO
The SFO is responsible for investigating and prosecuting serious or complex fraud, including bribery, and corruption in New Zealand. With a focus on maintaining integrity and trust in the financial system, the SFO has developed strategic areas of focus to ensure it has the greatest impact with the cases it takes in. These are reviewed and updated every 12-18 months.