SFO investigates Wizard branches

Investigation for alleged fraud by Henderson and Lower Hutt branches of Wizard home loans launched by Serious Fraud Office

17 January 2009
The Serious Fraud Office has launched another investigation into the troubled finance sector.

The Weekend Herald reports that the Henderson and Lower Hutt branches of Wizard home loans are being investigated for alleged fraud.

Wizard specialised in financing property low documentation mortgages, mostly for self-employed people unable to prove their incomes.

Its parent, GE Money, closed the operation last month, blaming the credit crunch for a lack of business. There are now claims property values were inflated by some consultants so that people could borrow more.

Clients whose credit record would not have been good enough for the banks and others who could not afford the loans are believed to have benefited.

© 2010 NZCity, NewsTalkZB