'Bank of Montreal alleges huge mortgage fraud'

Discussion in 'Wall St. News' started by Wallace, May 13, 2010.

  1. "The Bank of Montreal is suing hundreds of people in Alberta, including lawyers,
    mortgage brokers and four of its own employees, in what is one of the largest alleged
    cases of mortgage fraud in Canadian history.
    Legal documents obtained exclusively by CBC News allege the bank was the target of
    a sophisticated fraud operated by 14 inter-connected groups. The documents claim the
    scheme generated at least $140 million, about $70 million of which was for phoney

    first reported the cops said 'what d'you want us to do about it ?'
    "The RCMP says there's no decision yet on whether to investigate massive fraud
    allegations involving hundreds of Albertans-- including mortgage brokers, realtors
    lawyers and one Calgary MP.
    Media reports had said police would not pursue the case after the Bank of Montreal
    announced it was suing over an alleged $70 Million mortgage fraud case.
    But Superintendent Eric Mattson with K Division says that's not true. He says there's a
    lot of documentation to wade through first. RCMP say it's only been ten days since they
    recieved more than 35,000 documents from the Bank of Montreal and they need to go
    through it all before deciding if there was criminal intent."

    apparently mortgage fraud in one form or another is a common and widespread activity