Charges laid after Calgary mortgage fraud scheme
Posted Aug 5, 2010 10:16 pm.
This article is more than 5 years old.
Police have uncovered a massive mortgage fraud scheme involving 22 Calgary properties and eight financial institutions.
The $12-million mortgage fraud scheme was uncovered by the Alberta Law Enforcement Response Teams.
The alleged ring-leader surrendered to police at the end of July.
Ali El-Sayed and his company Ramses Holdings Inc. have been charged with 23 counts of fraud over $5,000.
The 31-year-old has also been charged with one count of extortion.
Another person connected to this scheme surrendered to police on Wednesday.
Christos Fotopoulos has been charged with three counts of fraud over $5,000.
An arrest warrant has also been issued for a third person thought to be connected to the scheme.
Russell Kilba, 34, is wanted on 10 counts of fraud over $5,000.
All three accused were Calgary residents at the time of the offence.
The financial institutions allegedly defrauded in this case include: Scotiabank, TD Bank, ATB Financial, First National Financial, CIBC, Merix Financial, Royal Bank and MCAP Financial.
Calgary police say it’s easy for anyone to become a victim of a scheme like this, especially with the promise of large amounts of cash for little or no work.
They say there are a number of ways criminals perpetrate a mortgage fraud.
The most common is title fraud, but it can also be done through a false appraisal, property flipping or air loans.
Sgt. Michelle Hanley says these schemes can sometimes involve a number of people including appraisers, lawyers, realtors, bankers, vendors and sellers.
She says the most important thing people can do to protect themselves from this kind of thing is to be cautious. She says people shouldn’t sign documents if they don’t know or understand what they are and if something seems too good to be true, it likely is.
