(Montreal) More than fifteen suspects are due to appear in court this Wednesday in Montreal on suspicion of involvement in real estate fraud worth more than 5 million.
Posted at 10:18 am.
The 17 suspected fraudsters, seven women and 10 men ranging in age from 22 to 60, face several charges depending on their level of involvement in the alleged scheme: fraud, money laundering of the proceeds of crime, confiscation of stolen property and conspiracy.
The Economic Crimes Unit of the Montreal City Police Service (SPVM) reports that its investigation revealed that the network targeted five opulent unmortgaged properties that were rented in the cities of Westmount and Beaconsfield, as well as three vacant lots in the Verdun district of Montreal .
Police add that the fraudsters, using false identification documents, managed to pose as the owner of a target property and practically appeared before a first notary to sign a power of attorney that gives full authority to manage the property to an agent of the criminal network.
At the same time, the fraudsters opened an account in the name of the actual owners at a financial institution. According to the investigation, the broker subsequently obtained financing from a private lender and then signed a mortgage deed with another notary.
After the borrowed money was deposited into the fraudulently opened account, the suspects hurriedly withdrew it.
The SPVM reports that of the arrested suspects, some face prison sentences of up to 14 years.
The police point out that the consequences of these real estate frauds are serious for both injured owners and private lenders. The actual owners of the homes and properties in question are tied to mortgage loans totaling hundreds of thousands of dollars. The private lenders lost all the money they had borrowed.