Four people have been charged with money laundering and fraud after millions were lost in a complex mortgage fraud scheme, according to Calgary police.
Ricco King, 42, Farhan Sattar, 35, Jared Jenkins, 30, and Santino DiMarzo, 30, were arrested on December 10 and charged with a total of 29 crimes including conspiracy to obstruct justice, organized crime and sexual assault.
“The alleged criminal group used fictitious companies to commit mortgage fraud by falsifying documents related to employment records, bank statements, credit information, and tax assessments,” Calgary police said.
“There were many variations and methods of the scheme, which allowed them to substantially profit from these illegal activities.”
ALERT Calgary, an integrated team consisting of Calgary Police Service and RCMP members uncovered the scheme as part of an investigation that began in October 2013.
The detained are being accused of directing mortgage brokers, bankers, realtors and lawyers to facilitate phony mortgages and established four dummy companies to carry it out.
The companies were called Apex Medical Services Ltd., Petro-Alta Resources Corp., Harmony Skin Clinic Ltd, and Nucity Homes Inc.
The police also allege that an organized crime group aided a plethora of people from Calgary’s underworld with fraudulent mortgages, potentially bilking taxpayers out of millions.
More than 20 homes located in Calgary, Fort McMurray and British Columbia were purchased with fraudulent mortgages and the homes ranged from $300,000 to $1 million.
Police say they are expecting to lay more charges and arrests and are encouraging anyone who’s dealt with the accused or their companies to review your mortgage with their lending institution.
ALERT was established and is funded by the Alberta Government and is a compilation of the province’s most sophisticated law enforcement resources committed to tackling serious and organized crime.