Presumed Leader of $5M Real Estate Fraud Network Brought Back to Montreal
The Service de police de la Ville de Montréal (SPVM), in collaboration with Interpol and Spanish authorities, has arrested the suspected leader of a large-scale real estate fraud network that targeted victims in Montreal. The 36-year-old suspect, who had been on the run, was extradited from Malaga, Spain, last Friday by investigators from the SPVM Economic Crimes Unit. He appeared in Montreal court on February 8, facing charges of fraud, conspiracy, and offenses related to the proceeds of crime.
This marks the 18th arrest in an ongoing investigation launched in 2021 into real estate fraud schemes totaling over $5 million. In November 2023, 17 individuals (seven women and ten men, aged 22 to 60) were arrested and charged based on their involvement in the scheme, facing charges of fraud, money laundering, possession of stolen property, and conspiracy.
How the Fraud Worked
Investigators discovered that the network targeted five mortgage-free properties, including two rental homes in Westmount and Beaconsfield and three vacant lots in L’Île-des-Sœurs. Using fake IDs, fraudsters impersonated the legitimate owners and met with a first notary via a virtual meeting to sign a power of attorney granting full property management rights to an accomplice.
At the same time, they opened a bank account in the real owners’ names, secured financing from a private lender, and signed a mortgage agreement with a second notary. Once the funds were deposited into the fraudulent account, they withdrew the money immediately. This scam caused major financial losses for both homeowners and private lenders.
Prevention Tips
Real estate professionals, including notaries, realtors, mortgage brokers, private lenders, and financial institution employees, play a key role in preventing identity fraud. Here’s what to watch out for:
✔️ Be cautious of clients in an extreme rush.
✔️ Learn to distinguish real IDs from fake ones and verify them via the SAAQ website.
✔️ Request multiple forms of identification and take time to verify them.
✔️ Be extra vigilant with powers of attorney and ask detailed questions.
✔️ Be wary of clients who insist on virtual meetings and refuse in-person visits.
✔️ Watch out for clients who avoid discussing loan terms or fees.
In this case, the fraudsters first rented the targeted homes using fake IDs, highlighting the need for extra caution among landlords.
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