Lawyer fined $5,600 for role in housing loan scam involving more than $2 million

Lutfi falsely certified witnessing the purported mortgagor of the house in Saraca Terrace sign the home loan document. ST PHOTO: GIN TAY

SINGAPORE - A lawyer pleaded guilty and was fined $5,600 on Wednesday (June 10) for his role in a housing loan scam involving $2.32 million for the purchase of a house in Saraca Terrace off Yio Chu Kang Road.

Mohammed Lutfi Hussin had falsely certified in April 2014 that he witnessed the purported mortgagor of the house, Mr Mohammad Naseeruddin Allamdin, sign the home loan document.

The 54-year-old had also falsely certified that another document on the transfer of the property was correct.

Lutfi was then the sole director of law firm Lutfi Law Corporation and his staff included Ms Fauziah Mohd Hussain, a conveyancing secretary.

On Wednesday, the court heard that Mr Naseeruddin's purported property agent liaised with Ms Fauziah to prepare the relevant documents.

Deputy Public Prosecutor Suhas Malhotra said Ms Fauziah directed Mr Naseeruddin to sign the various documents.

Lutfi, however, was not present but certified later that he had witnessed the signing of the mortgage forms on April 22, 2014, and that the document on the transfer of the house was correct .

"However, the accused did not meet Naseeruddin at any point and did not contact Naseeruddin to enquire whether he accepted the transfer of the property," DPP Malhotra said.

The DPP said Lutfi only realised his firm acted for Mr Naseeruddin when he was questioned by police officers from the Commercial Affairs Department.

This was after Maybank gave a mortgage loan of $2.32 million to Mr Naseeruddin,who then defaulted on the repayment.

Lutfi's lawyer Tan Hee Joek said in mitigation that his client had voluntarily closed his law firm at the end of April 2017 and has not handled any conveyancing matter since May 2017.

He added that Lutfi is now working as a legal assistant in another firm, A. Rohim Noor Lila LLP.

District Judge Marvin Bay, in sentencing him, said there was "a serious dereliction" of Lutfi's responsibilities as a lawyer.

However, he recognised that Lutfi was deceived by Mr Naseeruddin's fraudulent actions.

"Nevertheless, it would be a legitimate expectation that solicitors will conscientiously and attentively apply themselves to diligently undertake their duties to ensure that they are not made instruments of fraudulent activities," he added.

The scam was part of a larger ruse involving nearly $11.4 million.

Nine other people had been charged in court last year. Court records show four of the cases are pending, while details of the rest are not immediately available.

Join ST's WhatsApp Channel and get the latest news and must-reads.