https://au.news.yahoo.com/qld/a/34369951/dementia-patient-loan-exposed-scam-court/#page1
A bogus investment scheme unravelled after a key player secured a 30-year mortgage for a 98-year-old woman with dementia, a court has heard.
David St Pierre is facing a sentencing hearing at Southport District Court on Wednesday after pleading guilty to three charges of dishonestly using his position to gain advantage.
The court heard St Pierre, 46, used his position as a home finance manager with Westpac to secure loans for 11 clients - mostly "asset rich, cash poor" pensioners.
St Pierre colluded with the director of an investment firm called Capital Growth Investment Club (CGIC) to fake income documents for the clients in order to secure the loans.
Prosecutor Bruce Mumford QC told the court the clients had been promised returns varying from 12 to 20 per cent on their investment by CGIC.
In total nearly $4 million in loans was obtained from Westpac with $3.28 million being lost when CGIC was liquidated in February 2011.
Mr Mumford said the final victim of the scheme was a 98-year-old woman living in an aged care home with "advanced dementia".
The woman owned her home outright and, after obtaining six false documents from CGIC showing she received $3700 per month in income, St Pierre secured a $450,000 loan.
All but $10,00 of that money was lost after being invested into CGIC.
Mr Mumford said St Pierre's crimes were "calculated and determined" and were a "serious breach of trust".
"He already knew these borrowers wouldn't have met the serviceability (requirements)," Mr Mumford said.
"He must have known he was putting them at risk."
The hearing continues.