For immediate release

Media Statement:

11 November 2010 

SFO secures conviction on $13M property fraud charges

Raghu Srinivas Aryasomayajula, was today found guilty in the District Court at Auckland of two charges of Obtaining by Deception.  

The charges which were brought by the Serious Fraud Office (SFO) concerned a series of mortgage frauds with a value of approximately $13M.

Aryasomayajula’s co-defendant, Phillip Julian Cavanagh, had previously plead guilty to the same charges in October 2009 and was sentenced to 2 years and 5 months imprisonment.

Both Cavanagh and Aryasomayajula were former real estate agents of Barfoot and Thompson.

Chief Executive, Adam Feeley, said the case demonstrated the range of major frauds currently under investigation by the SFO.

“While we have put considerable energy into financial market frauds in recent times, this case is an example of the many different types of other frauds that continue to be perpetrated and need speedy investigations.”

Mr Feeley added that concluding the matter maintained SFO’s trend of reducing time taken to conclude both investigations and prosecutions.

“The average age of SFO investigations has reduced by almost 70% in the past 15 months, and a number of our recent prosecutions, such as National Finance and Five Star Finance have secured early guilty pleas from some defendants.”  

Mr Feeley said that the SFO continued to have 22 cases under investigation and a further 31 under prosecution.

Aryasomayajula has been remanded in custody and is scheduled to be sentenced on 3rd February 2011.

Ends.

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