Buy to let property owners have gone on trial accused of a multi-million pound mortgage scam.

The gang of five are alleged to have obtained 20 loans by deception by lying about their income and assets and supplying forged documents to apply for loans – the largest worth £637,000.

Sheffield Crown Court heard the alleged fraud lasted from 2003 to 2006 and saw them repeatedly applying for remortgages on property they already owned, for a larger amount each time, as well as buying a string of buy-to-let properties.

The five are all charged with obtaining money transfers by deception.

Munir Akhtar, 42, and his wife Munira Bhatty, 40, of Bawtry Road, Bessacarr, Doncaster, are jointly charged with 11 counts.

Munir Akhtar is also charged, with Sajid Mahmood, 44, of Checkstone Avenue, Bessacarr, and a 41-year-old woman who cannot be named, with a further seven counts. Munir Akhtar’s brother, Sajid Mahmood, 33, of St Annes Road, Belle Vue, faces one count. All five deny the charges.

Prosecutor David Brooke said in a series of applications Mrs Bhatty claimed to be a senior manager earning up to £100,000. She worked for Doncaster Council as a clerk earning no more than £18,000.

Mr Burke said: “It may be the mortgage companies were rushing to lend money, but they were entitled to rush if they were acting on true information. If not they were lending on a false basis.”

The trial continues.

A missing solicitor involved in an £7.8 million mortgage fraud has been struck off for his involvement in submitting false paperwork for 32 mortgages to the Abbey and Birmingham Midshires.

Mahmood Ali, whose whereabouts are unknown, worked at Ilford, Essex legal firm Montague Mason,that was shut down by the Solicitors Regulation Authority (SRA) for breaking solicitors accounts rules.

Last month four men were jailed for a total of 15 years for their involvement in the scam  between June and December 2008.

They pleaded guilty to several fraud-related offences at Southwark Crown Court in December 2009, but Ali is still free.

The court had heard how the gang identified suitable properties across the south-east to use for false mortgage applications – without ever approaching the owners.

Montague Mason Solicitors, submitted false paperwork in connection with 33 fraudulent mortgage applications and the fraudulent mortgages were finalised when false paperwork was completed in the name of the solicitors, including the certificates of title requesting the banks release the funds.

Once the deals were signed-off and the funds transferred,  the fraudsters quickly dispersed the stolen money from the solicitor’s accounts into a network of many hundreds of false bank accounts, controlled by the gang.

Ali was due to appear before the Solicitors Disciplinary Tribunal on March 23, but did not attend. He was struck off and ordered to pay £15,000 costs.