The Commonwealth Bank repeatedly ignored evidence of an alleged $100 million fraud that implicated its own staff, and instead, seized the homes of victims in a bid to recoup its losses.

Fairfax Media can reveal the CBA allowed the alleged architects of the scam, Bill Jordanou and Robert Zaia, to continue to broker tens of millions of dollars in loans after failing to heed the findings of an investigation by the bank’s internal fraud division almost seven years ago.

The failure to act on the information raises serious questions about the CBA’s culpability in the losses and its decision to continue to seize the homes of Victorian families that police have identified as victims.

Mr Jordanou, Mr Zaia and three accomplices were charged last month with hundreds of counts of fraud and financial deception resulting from a decade-long alleged scam run from suburban accountancy firm Zaia Arthur & Associates.

Victoria Police’s fraud squad launched an investigation into the firm in late 2011 after the CBA reported loan applications lodged on behalf of clients that were supported by falsified documents.