The mastermind of a mortgage scam swindled banks and developers out of more than $800,000 in rebates involving property worth $38 million, the District Court heard yesterday. Ken Chan Yin-yat, 41, has pleaded not guilty to seven counts of conspiracy to defraud banks between October 2002 and July 2003. He has also denied perverting the course of justice, in relation to information given to police. Prosecutor Juliana Chow told the court Chan and his co-conspirators provided the banks with falsified financial information when applying for mortgages. The banks included HSBC, the Bank of East Asia, Standard Chartered Bank and the Bank of Communication. Chan allegedly obtained mortgages worth $13 million for nine of the 13 properties involved in the alleged fraud. Rebates given by banks and developers were allegedly split between Chan and accomplices. The court was told that in October 2002, Chan arranged for friend Leung Chi-ming to purchase five properties in a residential complex, The Seacrest in Tuen Mun, for $13 million from K. Wah Real Estate. At Chan's instruction, Leung sought five mortgages totalling $8.6 million from the Bank of East Asia using false documents. The loans were approved and rebates of $450,000 paid to Leung. The court was also told that in 2003, Chan arranged for a friend to buy a flat in Pokfulam for $11.5 million. Lee went to HSBC seeking a loan of $8.05 million with false documents. The case continues today before Judge Fergal Sweeney.