Regulator reports a rise in suspected cases
New Zealand’s financial markets regulator has filed 61 charges against six individuals in the Manukau District Court over an alleged mortgage fraud scheme.
The Financial Markets Authority (FMA) filed the charges under the Crimes Act 1961, the Secret Commissions Act 1910, and the Financial Markets Authority Act 2011, according to a news release. Suppression orders are in place, limiting further public disclosure about the accused.
Louise Unger, executive director of response and enforcement at the FMA, said the alleged conduct posed a direct threat to public confidence in the country’s lending system.
“This type of alleged mortgage fraud undermines trust and confidence in New Zealand’s lending system and financial institutions,” Unger said. “Mortgage fraud is one of our key regulatory priorities. The FMA is taking this action to both hold those responsible to account and to deter others from engaging in similar conduct.”
The FMA said it was unable to comment further while the matter remained before the courts.
The charges come as the regulator has recorded a sharp rise in mortgage fraud cases. FMA misconduct cases involving potential mortgage fraud increased from nine in 2022 to 16 in 2023 and 23 in 2024, representing a 78% increase in 2023, followed by a further 44% rise in 2024, BusinessDesk reported.
The FMA has said that misconduct reported to it is often carried out by third parties without borrowers’ knowledge, compounding systemic vulnerabilities. Victims of mortgage fraud can face long-term financial and emotional consequences, including taking on loans larger than they should because of artificially inflated property values. Some may also risk losing deposits drawn from First Home KiwiSaver withdrawals.
In July 2025, the FMA issued a warning letter to the chief executives of banks and non-bank deposit takers, outlining fraud risk indicators to help lenders strengthen their detection and prevention systems.
