Criminal charges pending in BMO fraud case

Criminal charges pending in BMO fraud case


The RCMP are sifting through thousands of pages of documents to decide whether to pursue criminal charges in what is being touted as Canada's largest mortgage fraud case ever.


Over 35,000 pages of documents have already been handed over to the investigators with more expected to come.


A CBC story yon May 10, 2010  cited sources as saying the Bank of Montreal was told by authorities they were not pursuing the case, but RCMP spokesperson Sgt. Patrick Webb said that is false. 

"We are still assessing thousands of pages of documents and we won't know until we are done," Webb said. "But to say that we have decided not to pursue the case is false." 

The Bank of Montreal has filed a massive lawsuit accusing hundreds of Albertans - including Tory MP Devinder Shory - of an alleged $70-million mortgage scheme.

15 Comments
  • Sharon Thompson 2010-05-13 3:01:12 AM
    As a player in the Mortgage Brokering Industy I have been originating mortgages for Canadians since 1999. Since then our regulatory changes have been tremendous, bringing honor and prestige to our profession. We are now governed by laws of disclosure, laws of protection and these laws demand that we work in the best interest of our clients, lenders and industry. Those mortgage brokers involved in this fraud scheme have taken a giant step backwards ... way back to the days when a mortgage broker was stereotyped as a "shyster" ... an unscrupulous yet last resort for the poor consumer with no other choice or understanding. All I can say to these modern day shysters in ... "We've come a long way! Our honest work, our integrity, our earned trust from our clients and lenders and contribution to our Canadian economy will not be jeopardized by the likes of you!" What possesses people like you to think you can commit fraud, whether it be against an individual or an entity as large as a Canadian Bank and NOT think that one day you will get caught?! May our governing body now show us and the world how it will deal with mortgage brokers and agents who put money before ethics. And then there are the lawyers ....
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  • Me 2010-05-13 3:12:28 AM
    sure - wink wink nudge nudge
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  • FJ 2010-05-13 3:24:03 AM
    This story is spooking the market. Think consumer confidence, investor confidence, etc.

    A news item remarkably similar to this one was put out at the very, very beginning of what ended up morphing into the U.S. subprime mortgage meltdown.

    Some later claimed that that initial news event (there was actually a series of apparently independent news events) was orchestrated by people, or more accurately people connected to others, who had taken massive short positions on the derivatative securities.

    It will be interesing to watch this unfold, keeping an eye on the macro effects including who stands to benefit from those effects. The few heads that are going to roll in Alberta over this, is not where we should be focussing our attention.
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