Alberta man jailed for multi-million mortgage scam

Alberta man jailed for multi-million mortgage scam

An Alberta man was sentenced to three years in prison for a $3.9-million rural mortgage scam that included 32 separate fraud charges over two years.

In the Edmonton courtroom on Wednesday June 23, Eugene Charnczuk, 40, was also ordered to pay approximately $1.3 million to the Canada Mortgage and Housing Corporation, Genworth Financial, CIBC and TD Canada Trust, reported the Edmonton Sun.

"White-collar crime is a serious matter, which should have serious consequences," said Richard Marceau, Court of Queen's Bench Justice.

The scam involved persuading so-called straw buyers to give up their names and credit information along with a $5,000 fee. Charnczuk and his co-accused James Steinhubl bought 31 residential lots in the Warburg and Empress townships of Alberta with the info, leaving the tricked loan applicants to pay for the fraudulent mortgages.

9 Comments
  • joe smith 2010-06-25 3:51:34 AM
    I see that back in 2004 this Eugene character was up for charges for mortgage fraud back then. Why was he not being investigated after that?.
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  • AB Mortgage Broker 2010-06-25 3:52:32 AM
    It's about time! Time to clean up our industry!! Jail them and a lifetime ban. You know who you are...
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  • Zoltan M Padar 2010-06-25 4:42:29 AM
    Just about time our legal system realizes the seriousness of these fraudulent activities and do something about it. We are all paying directly and or indirectly for the consequences of these criminals actions. Yes, he was already flying under the radar for many years, not much happened, I'm happy he is sacked now, even it took a long time for the lawmakers to make a move.
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