Five Held In £2.8m Homes Loan Fraud Probe
FIVE people have been arrested following a police probe into an alleged £2.8million mortgage fraud.
The three men and two women are accused of conning major lenders such as Lloyds TSB over 18 months.
Two people have appeared in court and three others are due to follow.
The investigation centres on claims that the gang were applying for mortgages, of £250,000 and more, using fictitious names and dates of birth.
It’s also claimed they used bogus documents to obtain loans.
The lowest sum allegedly obtained by them was £40,000 and the highest £261,250.
On five occasions, sums of just under £250,000 were allegedly paid out to the team. Michael O’Neil, 38, and Richard Crawford, 25, both from Glasgow, appeared at the city’s sheriff court on fraud charges.
It is claimed O’Neil was involved on 17 fraudulent mortgage applications processed between September, 2004 and April, 2006.
Crawford is alleged to have had involvement in 11 applications during the same period.
The three others charged by police are also from Glasgow and are expected to appear in court later.
It’s claimed a range of fraudulent applications were submitted to obtain loans from the Bristol & West Building Society and Lloyds TSB using brokers who were unaware of the alleged scam.
O’Neil and Crawford are said to have bought a string of properties using the bogus mortgage applications.
They include homes in Great Western Road and Partickbridge Street in Glasgow’s west end, Kirklands Drive and St Helens Gardens on the city’s south side, Parkholme Court in Hamilton and Kilpatrick Court in Stepps, Lanarkshire.
The two women are alleged to have set up bank accounts to receive the millions in fraudulently obtained loans. The Crown Office in Edinburgh yesterday confirmed an investigation was under way.
A spokeswoman said: “Two men appeared at Glasgow Sheriff Court on March 10 on charges of fraud. They were given bail pending inquiries.”
The 18-month investigation was carried out by detectives from the Strathclyde Police Fraud Squad.
The alleged scam was uncovered when some of the “borrowers” defaulted on the loans and could not be traced.
Last month, the Sunday Mail revealed that the development at Parkholme Court in Hamilton was being investigated by police.
Mortgage fraud is one of the fastest growing crimes in Britain.
Last year, high street lenders such as banks and building societies lost £700million to conmen.
Properties and sums involved
£40,000 for a house in Low Waters Road, Hamilton.
£40,500 for a home Milton, Lesmahagow, Lanarkshire
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