aiekon
Active Member
I don't think I've seen this posted here.. sorry if it has. Anyway, here's an article from today's Toronto Star.
Parking spots sold as condos
Alleged fraudsters stole $3.8M from TD Bank; lawyer, bankers involved
January 18, 2008
Jeffrey Todd
staff reporter
Five Toronto-area residents face more than 100 fraud-related charges in an alleged real estate scam that sold parking spaces as condos to innocent investors, police say.
Bankers, developers, a lawyer and real estate agents allegedly worked together to defraud TD Bank of $3.8 million in bogus mortgage loans.
"I have never seen such a tight-knit and closed circuit," Det. Craig Ellis said. "The owners, the agents, the bank employees, the lawyers ... everybody that had anything to do with it: It was all baloney."
The alleged scheme ran from 1998 to 2000. Police claim two brothers, Kam Cheung Chan and Patrick Chan, enticed their victims to invest in two condominiums.
Police said the Chan brothers had victims fill out a mortgage application but didn't ask for any money up front, waiving the down payment.
Bank employees who were allegedly in on the scam made sure the mortgage loans sailed through. Then the suspects kept the cash.
The thieves were apparently selling parking and storage spaces, not condos, for about $300,000 each.
Unsuspecting investors were promised a cut of profits when the properties sold. But they never got a penny. "Sometimes they were recruited off the street or at investment seminars," Ellis said. "You have to realize these people were ... unsophisticated (about) real estate transactions."
Five suspects face 135 charges. Canada-wide warrants have been issued for two more suspects.
The TD Bank at Weston Rd. and Finch Ave. provided the funds for the mortgages. Bank officials blew the whistle on the case when problems arose with the accounts.
"The Chans were respected builders in the community," Ellis said. "They dealt with the bank, and as such they were in contact with bank employees."
Kelly Heckler, spokesperson for Toronto Dominion, said the bank has re-evaluated its security measures. "We have long since tightened our procedures. We reviewed what happened and how it happened. But for security reasons I am not going to get into details."
Heckler wouldn't say whether the stolen funds were recovered.
Patrick Chan, 61, of Richmond Hill; Lascelles Williams, 36, of Pickering; Saquib Majeed Baig, 38, of Markham; Steven Mucha, 53, of Toronto; and Roland Williams, 70, of Mississauga face fraud and other charges. They are scheduled to appear in court on Feb. 25.
Canadawide warrants have been issued for Ling Ling Cho, 45, of Markham, and Kam Cheung Chan, 54, of Mississauga, who are also wanted on charges of fraud.
http://www.thestar.com/printArticle/295220
Parking spots sold as condos
Alleged fraudsters stole $3.8M from TD Bank; lawyer, bankers involved
January 18, 2008
Jeffrey Todd
staff reporter
Five Toronto-area residents face more than 100 fraud-related charges in an alleged real estate scam that sold parking spaces as condos to innocent investors, police say.
Bankers, developers, a lawyer and real estate agents allegedly worked together to defraud TD Bank of $3.8 million in bogus mortgage loans.
"I have never seen such a tight-knit and closed circuit," Det. Craig Ellis said. "The owners, the agents, the bank employees, the lawyers ... everybody that had anything to do with it: It was all baloney."
The alleged scheme ran from 1998 to 2000. Police claim two brothers, Kam Cheung Chan and Patrick Chan, enticed their victims to invest in two condominiums.
Police said the Chan brothers had victims fill out a mortgage application but didn't ask for any money up front, waiving the down payment.
Bank employees who were allegedly in on the scam made sure the mortgage loans sailed through. Then the suspects kept the cash.
The thieves were apparently selling parking and storage spaces, not condos, for about $300,000 each.
Unsuspecting investors were promised a cut of profits when the properties sold. But they never got a penny. "Sometimes they were recruited off the street or at investment seminars," Ellis said. "You have to realize these people were ... unsophisticated (about) real estate transactions."
Five suspects face 135 charges. Canada-wide warrants have been issued for two more suspects.
The TD Bank at Weston Rd. and Finch Ave. provided the funds for the mortgages. Bank officials blew the whistle on the case when problems arose with the accounts.
"The Chans were respected builders in the community," Ellis said. "They dealt with the bank, and as such they were in contact with bank employees."
Kelly Heckler, spokesperson for Toronto Dominion, said the bank has re-evaluated its security measures. "We have long since tightened our procedures. We reviewed what happened and how it happened. But for security reasons I am not going to get into details."
Heckler wouldn't say whether the stolen funds were recovered.
Patrick Chan, 61, of Richmond Hill; Lascelles Williams, 36, of Pickering; Saquib Majeed Baig, 38, of Markham; Steven Mucha, 53, of Toronto; and Roland Williams, 70, of Mississauga face fraud and other charges. They are scheduled to appear in court on Feb. 25.
Canadawide warrants have been issued for Ling Ling Cho, 45, of Markham, and Kam Cheung Chan, 54, of Mississauga, who are also wanted on charges of fraud.
http://www.thestar.com/printArticle/295220