SOURCE NZ Herald
5:00AM Friday October 12, 2007

Auckland’s biggest real estate agent, Barfoot & Thompson, confirmed yesterday that it has sacked a fourth salesperson, amid claims of a multi-million dollar mortgage scam.

Director Peter Thompson said the latest contract had been terminated in the past 24 hours.

“This person had been overseas for the school holidays and we had to wait for them to return to New Zealand in order to be able to convene a meeting. Following that meeting we advised them of the company’s course of action.”

Mr Thompson said on Wednesday that an internal investigation found agents had allegedly inflated sales prices on possible development properties to borrow money from banks.

More than 20 such transactions and up to 25 other people in the industry could be involved, including developers and valuers, Mr Thompson said.

He said no private vendor had been hurt by the transactions.

So far three Barfoot & Thompson agents have been suspended by the Real Estate Agents Licensing Board. The case, which the Serious Fraud Office is understood to be investigating, also involves a sales assistant and a former salesperson.

After ending the latest contract, Mr Thompson said he was confident that was “the end of the matter for Barfoot & Thompson”.

“We sincerely regret that the actions of a few have impacted on the reputations of our 900-plus salespeople,” he said.

Real Estate Institute president Murray Cleland said yesterday he wanted to get people committing fraud out of the industry. He was happy with the immediate action taken by Barfoot and Thompson.

Mr Cleland said the institute was informed straight away and went immediately to the licensing board to have the licences of the agents involved suspended.

Building Issues Minister Clayton Cosgrove said the real estate industry was in dire need of reform.

“Every day you wake up there is incompetence, more silliness and in this case, alleged fraud,” he said.

He expected to have a bill introduced to Parliament before Christmas reforming the industry.

Under measures proposed for the bill it would no longer be compulsory for agents to join the Real Estate Institute and regulation would be put in the hands of an independent body.

- NZPA