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OPP now investigating ongoing mortgage fraud case

By SmartCoverage Team on November 8th, 2017

The Ontario Provincial Police (OPP) is now investigating fraud allegations centered around the improper use of syndicated mortgage investments, per a report from The Globe and Mail.

Its investigation involves the two mortgage brokerages that were suspended around this time last year by the Financial Services Commission of Ontario (FSCO) for their role in allegedly deceiving investors who had contributed to 16 different mortgage pools. Those brokerages in question were Tier 1 Mortgage Corporation and First Commonwealth Mortgage Corporation, while the specific brokers that lost their licenses were Bhaktraj Singh, Jude Cassimy, and Dave Balkissoon.

This new OPP investigation is, at this point in time, specifically centered around a condominium project in Bracebridge, Ont. that had been funded through the syndicated mortgages. The case falls under the OPP’s anti-rackets branch, and it has already contacted investors in the project to see if they will be willing to provide testimony.

Many of the affected investors are being represented by Toronto lawyer David Franklin, who did not hold back in sharing his feelings on both the situation and FSCO’s initial role in handling it.

“They were told these are safe, secure investments, you’ll get eight per cent on your money, it’s good for your retirement and it’s RRSP eligible,” he said.

“FSCO has failed completely in its duty to protect the public interest with respect to these syndicated equity development mortgages.”

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