$3.8 million loan fraud
Five Canadians are facing 100 fraud related charges after police uncovered a real estate scam in which parking spaces were sold as condos to innocent investors.
The 5 men, who include developers, bankers, a real estate agent and a lawyer, allegedly colluded in defrauding Toronto Dominion Bank out of some $3.8 million worth of mortgage loans.
According to police, brothers Kam Cheung Chan and Patrick Chan lured their innocent victims into investing in two condos.
After getting their victims to fill out a mortgage application they then allegedly used bank employees who were accomplices to approve them in quick time.
It is then claimed that the Chans pocketed all the cash.
The $300,000 parking space
However, it turned out that the group of alleged fraudsters weren’t selling condominiums at all. Instead, they were selling parking and storage spaces for a whopping $300k each!
The investors they conned were lured with a promise of large profits that would be realised when the properties were subsequently sold.
The five men detained thus far face 135 charges between them. Two more suspects are still being sought and warrants have been issued.
Kelly Heckler, a spokesperson for TD Bank, said that they had since re-evaluated their security measures.
He did not mention, however, whether any or all of the missing funds had been recovered.