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Mortgage Broker News | 06 Jun 2013, 12:00 AM Agree 0
Mortgage fraud allegations amounting to $69.5 million in Alberta have finally been settled by Bank of Montreal out of court – lawsuits involving a group of mortgage brokers, lawyers and BMO employees.
  • seen this before | 12 Jun 2013, 04:55 PM Agree 0
    1. BMO claimed to have lost about 30 million but sought to recover 69 million (looking to recover profits on mortgages that were fully repaid and the properties never went into foreclosure).

    2. BMO pretty much forced law enforcement to launch an investigation, thereby taking much needed resources from mom & pop operations that had suffered fraud and needed police action more urgently. Unlike the article's suggestion, the RCMP did not want to do BMO's bidding -- BMO was looking for more leverage over the defendants. In fact they had a media campaign fully formulated from day one.

    3. When the market crashed in 2008 many many homes went into foreclosure and all banks suffered as a result. BMO's sued because of the losses that every other bank suffered as well. I dont believe for a second that they had been investigation since 2006. Who waits 4 years to take any legal action?

    4. The straw buyers, most of whom had no idea that what they were doing were doubly victimized -- BMO told them that they were each fully responsible for the $30 million in losses.
    5. Money and manpower required for a bank to do a fraud investigation and to sue an INDIVIDUAL fraudster is not excessive. Its only excessive in this case because BMO decided to sue almost 400 people, including their own employees.
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