Amsterdam police have arrested a real estate agent from Zaandam and seven of his accomplices on suspicion of large-scale mortgage fraud.

The man (43) is accused of falsifying mortgage papers for criminals who are increasingly using the method as a quick and easy way to launder money.

He also took out mortgages in the names of foreign workers who wanted to start one-man businesses, such as window cleaning or a taxi service. They would often have no idea what they had signed up for and get into financial difficulties as a result, police said.

The man, who was known to police, had been paid large amounts of money for his services. A raid at four addresses connected with the real estate agency uncovered money and luxury items such as watches and jewellery but also a cosh. The agency in Zaandam have since been closed.

Police are currently talking to 20 witnesses and are calling on more to come forward.

Mortgage fraud is rampant, police said, and is undermining an already shrinking housing market.

“We are seeing a takeover of the market by criminals which we as authorities and institutions have ignored for too long. Honest people can’t find a house and buyers who have been duped are also getting into trouble,” a detective who wished to remain anonymous, told the Parool.

Banks are currently not allowed to use tax office data to check up on potential home buyers, something the police have long argued could help prevent mortgage fraud.

The scrutiny of companies registered at the chamber of commerce should also be much more rigorous and banks and notaries should also be much more vigilant for signs of fraud, he said. “If a taxi driver tells you he has a huge turnover, you don’t close your eyes,” he said.

The case against the Zaandam real estate agent is part of a major operation to uncover mortgage scams in Amsterdam.

In 2024, police raided nine locations in Amsterdam, Almere, Badhoevedorp, and Zaandam, arresting 10 people for suspected money laundering, falsifying documents and mortgage fraud. All had jobs as real estate agents, administrators and mortgage advisors.

The ease with which criminal networks used falsified mortgage papers in a large-scale scheme to buy up hundreds of houses in the Amsterdam region, makes the existence of other networks across the country very likely, Amsterdam police chief Pim Jansonius said at the time.