12 August 2013
Sentence announced in Cheng Qi Wang fraud case
The Serious Fraud Office (SFO) has announced that Cheng Qi (Chris) Wang (54) has been sentenced to two years and nine
months’ imprisonment for dishonestly using a document and money laundering.
Crimes Act charges were laid against Mr Wang in June 2010 and in January this year he was found guilty on all counts.
Suppression orders had previously been in place in respect to the charges, conviction and sentencing, while Mr Wang
faced other charges in the Courts.
The SFO charges related to property transactions undertaken by Mr Wang during 2008. His method of using false
documentation to obtain 100% or greater mortgage funding from lenders was through the use of what is colloquially termed
‘price hydraulicking’. This entails the same day purchase and on-sale of particular properties at significantly
different purchase prices; the purchase price on the greater value sale and purchase agreement being relied upon to
Mr Wang processed mortgage money through various entities’ bank accounts, normally home stay students living with Mr
Wang at the time; he then paid the relevant costs before retaining the net balance of the proceeds.
In total, Mr Wang obtained $2.3 million in mortgage funding.
Acting Chief Executive for the SFO, Simon McArley said, “Mr Wang deliberately set out to deceive the banks concerned
into believing that he paid significantly more for the properties than he had. He also dragged other individuals into
his scheme. His method should be seen as a reminder to fund providers, and to investors, to maintain a high standard of
checks and balances.”