PUBLIC ALERTS/OPEN HOUSE THEFTS/ MORTGAGE FRAUD UPDATES (Updated Jan 2012)
There is a very good reason I'd rather do PROACTIVE loft/condo or house tours vs public open houses. Although some realtors claim they have sold a home at an open house, the point is...there is a better way. To date, there have been almost a dozen occurances of theft, scam artists, harrassment etc posted on our member site. Having handled many of these individuals in the past, it helps to have someone involved that can help screen these people.
Pre-approving buyers (even over the phone) is an improvement over the way most open houses are run. The ones I bring my clients to rarely have the agent DEMANDING photo ID. When a client specifically requests I hold a public open house, this is always a requirement. Those who refuse to supply ID are not permitted to enter.
In the last few years, I have even heard of people being tied up at open houses and held captive. What do you expect when you let ANYONE into your most prized possession that may have even been staking it out for a week after he read "Open house Sat and Sun 2-4".
Honesty is key to a successful partnership and I always tell my clients that want regular open houses that "I'm happy to do them but most likely it will get me more listings vs a buyer for your space."
The bottom line is I have NEVER once had a theft occur on my loft or unique property tours. Whether its 3 or 30 tours in a week, the buyers may not be ready to buy that day...but they are qualified and ready when the right space presents itself.
To keep all of my loyal clients appraised on the most recent thefts, stay tuned to this blog for regular updates.
PS This applies equally to those of who you choose to sell privately or with a discount broker.
Courtesy of TREB.
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MEMBER ALERT: Stolen Appliances
January 9, 2012 -- A Member has reported that during the week of December 19, a newly built vacant home he had listed in the Bathurst Street and Glencairn Avenue area was broken into.
Approximately $40,000 worth of new appliances was stolen from the $2.8 million property, which was also damaged, requiring $10,000 in repairs.
Although the lockbox went missing from the front entry, it is believed that the thieves accessed the home through the back door.
The Member advises that colleagues have informed him that thefts at newly built vacant homes are becoming a more common occurrence.
The property’s locks have been rekeyed and the incident has been reported to police. Anyone with information about such occurrences is encouraged to contact Toronto Police.
Members are encouraged to review the Member Alert regarding a suspicious individual interested in receiving information on vacant homes currently listed for sale.
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MEMBER ALERT: Suspicious Buyer From Maryland
November 14, 2011 -- A Member has reported a suspicious occurrence involving a Buyer from Maryland who claimed to be very wealthy.
A local acquaintance, who developed a relationship with the Buyer via Skype after meeting him online, referred the Buyer to the Member in October.
Claming that he was worth more than $40 million, as a result of the sale of two businesses, an inheritance, and settlements from the untimely deaths of two siblings, the Buyer expressed interest in purchasing a home for cash in the Greater Toronto Area.
The Buyer’s criteria included a home gym; a media room; a large garage to accommodate cars, motorbikes and recreation vehicles; and potentially, land for horses.
The individual who established the online relationship was planning to marry the Buyer, and as such, she viewed a number of properties on the Buyer’s behalf with the Member.
An rural property north of Toronto listed for $1.3 million was chosen and the Member organized a conference call between the Member, the fiancé, the Buyer and the Seller to discuss a number of specifics about the property.
The Buyer indicated that he would like to close on the property before the end of November and agreed that prior to proceeding with an offer, he would provide identification, proof of funds, his lawyer’s contact information and a $100,000 certified cheque or wire transfer.
The documents and deposit, however, were not forthcoming. The Buyer claimed that his funds were frozen to protect him from a fraud attempt. Subsequently, the Member learned that the Buyer was not on title to the Maryland home he claimed to own, the purchase date was inconsistent with his version, and its value was less than $100,000 rather than the $750,000 he suggested.
After making numerous other excuses as to why the documents and deposit were not forthcoming, the Buyer suggested that the fiancé undertake the cash transaction in her name on his behalf. When the fiancé requested identification, the Buyer ceased all contact.
The Buyer, who the Member met via Skype, is described as 30 years old, with light brown hair and blue eyes. He wears a baseball cap and claims to have served in the United States military.
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MEMBER ALERT: Seller Requesting Loan
November 7, 2011 -- A Member has reported an incident involving a deal that fell through in the Yonge Street and Lawrence Avenue area in August.
The Seller, who indicated he was acting on behalf of his elderly parents under Power of Attorney, accepted an offer on the property but did not disclose that he had taken out mortgages in excess of the amount offered on the home.
As the second mortgagee was unwilling to release the Seller from his obligations, the deal fell through. It has since come to the attention of the Member, who was acting on behalf of the Seller and the Buyer, that the Seller is soliciting other REALTORS® to re-list the property.
During the transaction, the Seller borrowed several thousand dollars from the Member, claiming that he needed the funds to move his parents into rental housing, and promising to repay the loan upon closing. He requested that the loan be provided in cash, claiming that it was a requirement of the rental company.
It was reported in the news media in 2010 that Toronto Police have charged the individual with multiple counts of fraud and forgery in connection with the restaurant industry.
The individual is described as approximately 5’8” tall, clean-shaven, with thick dark hair. He works exclusively with a cell phone and he does not have a land-based telephone line.
The Member who reported this concern indicated that other REALTORS® have also been victimized by this Seller’s request for a loan, to be repaid upon closing.
Members who wish to report concerns that may be related to this individual can visit any Toronto Police station or contact the main Toronto Police switchboard at (416) 808-2222.
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MEMBER ALERT: Rental Scam C01
March 25, 2011 --A Member has reported an incident involving an individual who posed as the owner of a vacant home that was recently sold in C01, in attempt to fraudulently collect rental deposits from prospective tenants.
The individual removed the lawn sign, broke into the residence, and showed it to prospective tenants on at least three occasions throughout the week of March 14th. He claimed to be an airline pilot and arranged to meet prospective tenants nearby before showing the property.
The incident was brought to the Member’s attention when a fellow REALTOR® who expressed interest in renting the property noticed that it had been recorded on TorontoMLS as recently sold.
The property’s locks have since been changed and the incident has been reported to police.
It is believed this matter maybe related to an incident that took place in 2002 in which students were defrauded of rental deposits on an apartment near Ryerson University.
http://www.ontariotenants.ca/articles/2002/ts-02h15.phtml
It may also be related to a similar incident reported in Vancouver in 1999.
http://www2.jurock.com/insider/insider_results.asp?category=all&keyword=lindholm
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MEMBER ALERT: Suspicious Out of Town Buyer - Pickering
March 2, 2011 --A Member has reported a suspicious occurrence involving an individual who presents himself as an out-of-town Buyer.
The Buyer contacted the Member via email on March 1st, indicating that he "loved the curb appeal" of a Pickering property listed for sale at $499,000 and intended to pay cash for it.
He offered a $50,000 down payment of "earnest money" indicating that the offer would be conditional on inspection.
The Buyer claimed that he resides in the Jane and Sheppard Ave. West area of Toronto, but is currently in a remote area of Japan, without access to a printer or scanner. Despite indicating that he does not have access to electronics, the Buyer suggested that he would sign documents electronically, via the Internet.
The Buyer further indicated that his Canadian lawyer would issue a cheque in U.S. funds, and subsequently indicated that he was in need of an attorney in the Member's "state".
He requested contact information for the Member's lawyer, indicating that funds would be payable to this individual, and then requested that the Member cash the cheque.
Members are reminded that fraud can be reported to the Government of Canada's anti-fraud centre (formerly PhoneBusters), by forwarding suspicious emails to info@antifraudcentre.ca
For more information please visit www.antifraudcentre.ca
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MEMBER ALERT: Lease Cheque Fraud
November 9, 2010 -- A Member with a condo lease listing in C01 has reported that he received a fraudulent cheque in relation to the listing on November 5.
An individual claiming to be a doctor at the Hospital for Sick Children called the Member recently, indicating that he had seen the listing on www.REALTOR.ca
After asking a number of questions about the listing, the individual indicated that another doctor would act as his representative to view the property. Telephone numbers with (647) and (210) area codes were provided, however, when the Member attempted to make arrangements to show the property, the representative indicated he was unable to do so due to travel arrangements to Austin, Texas and the United Kingdom.
On November 5, the Member received a cheque for a full year's worth of lease payments. The property had not been viewed nor had any paperwork been completed.
The cheque was made out to the individual Member, rather than the Brokerage and it was drafted in the name of a third party company, Conestoga Cold Storage.
Upon contacting Conestoga Cold Storage, the Member learned that it was indeed a fraudulent cheque. The company's Vice President of Finance advised that they are aware of a previous attempt made to issue the cheque, which included a request that the recipient provide funds in return.
Members are encouraged to contact www.phonebusters.com, a joint anti-fraud initiative of the Royal Canadian Mounted Police, the Competition Bureau, and the Ontario Provincial Police, to report such occurrences.
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MEMBER ALERT: Possible Identity Fraud
November 5, 2010 -- A Member has reported an incident potentially involving identity fraud.
In July, in October and on November 2, a Member was paged through his office regarding lock box codes for listings in W23 (Brampton), W24 (Brampton), and W05 (N of 401, West of Allen Rd) respectively.
On all three occasions, the Member, who works in the East districts, promptly made notification that he had not requested appointments to view the properties.
With regard to the most recent incident, the Member’s notification was not received in time to prevent suspicious individuals from fraudulently viewing the property at the time scheduled.
The listing salesperson advised that the owner of the home, which is vacant, was coincidentally at the property at the time. The owner witnessed two men attempt to enter through the front door. After having trouble with the lockbox, the men seemed to make a phone call, after which they entered the home without difficulty. They were witnessed inside the home acting oddly and taking a number of photographs.
The men are described as having black hair, one with a heavy build and one with a thin build. The vehicle they drove was a white Mercedes Benz.
Members are encouraged to review section 500 of the MLS® Rules, which deals with appointments, showings, keys and lock boxes.
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MEMBER ALERT: Niagara Fraud
October 29, 2010 -- The Niagara Association of REALTORS® recently issued a Member alert, of which TREB Members should also be aware. The REALTOR® who reported this matter to the Niagara Association of REALTORS® believes that the individual in question was also in contact with a number of Greater Toronto REALTORS®, possibly with regard to commercial dealings.
In November 2009 the Niagara Regional Police Centralized Fraud Unit opened an investigation into a fraud complaint filed by a local REALTOR®. In the summer of 2009 a Buyer approached the REALTOR® with regard to purchasing a home and potentially a business in the Niagara area.
Eventually, a sale was negotiated for a home valued at more than $1.3 million. During the course of negotiations it is alleged that several fraudulent documents were tendered in an effort to secure financing and complete the sale.
A number of criminal charges have been laid including, Attempting to Commit an Indictable Offence, Uttering a Forged Document X 2, Causing a Person to Act Upon a Forged Document X 2 and Possession of Property Obtained by Crime.
The individual is described as male, 44 years old with a medium build, dark brown hair and hazel eyes.
Members who may have further information can contact Detective Constable Craig Fyfe or Detective Sergeant Paul Spiridi of the Niagara Regional Police Centralized Fraud Unit at (905) 688-4111 and quote incident number 09-77513.
MEMBER ALERT: Vandalism at C09 Open House
October 22, 2010 -- A Member is warning REALTORS® to be aware of a woman who routinely attends open houses and demonstrates extreme disregard for others' property.
The woman, who attended an open house in a C09 condominium apartment on October 17, caused considerable damage to a high quality 9' x 4' blind in the home's master bedroom.
As the Member, who was hosting the open house, turned to address the woman's male companion, there was a loud crash. In attempting to open the blind, the woman had twisted its rod so forcefully that the entire unit, including its supporting hardware in the ceiling, collapsed.
When the Member suggested to the woman that the homeowners should be compensated for the damage, the woman refused to do so and became very irate.
The woman is described as middle aged, with a slender build and straight black hair, which was worn in a bun. The large square glasses that she wears are very noticeable. Her personality is described as very high energy.
Her companion is described as a tall, heavyset man with white hair. He is also middle-aged.
The Member previously encountered the woman three years ago at another open house in the same area and at that time, the Member was also concerned about the woman's unusual personality.
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Open House Theft Update: Opportunity to Identify Stolen Items. Sept 2010
September 28, 2010 -- It was recently reported that arrests have been made in connection with a number of open house thefts that occurred in Durham and Halton Regions however; it is now suspected that these thefts took place throughout Southern Ontario.
As a result of the arrests, police have recovered a large quantity of stolen goods with a total value of approximately $100,000.
Members with clients who may have been victims of an open house theft in recent months are asked to contact Durham Regional Police Detective Paolo Dellipizzi at (905) 579-1520 ext. 2766 to identify property.
Members are also encouraged to confirm with clients who have had open houses recently that no items are missing, as some goods in police possession were not reported as stolen.
Further information on this matter, including photos of the accused, is available in a news release on the Durham Regional Police website at:
http://www.drps.ca/internet_explorer/whatsnew/whatsnew_view.asp?ID=17735
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MEMBER ALERT - Fraudster Posing as Out of Town Buyer
June 25, 2010 -- Members are cautioned to be alert to an individual posing as a buyer who is planning to relocate to the Greater Toronto Area.
The individual, who claims to be a veterinarian living in England, has contacted REALTORS® via email, requesting assistance in finding a rural property with schools nearby.
After receiving a response from a REALTOR®, the fraudster requests that the REALTOR® receive funds by providing personal banking information.
For information on similar phone scams and other types of fraud please visit www.phonebusters.com
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MEMBER ALERT - Increase in Open House thefts
May 27, 2010 -- Toronto Police have advised that there has been an increase in open house thefts since the beginning of this year.
The majority of thefts, the most recent of which was reported a month ago, have occurred in central and south Etobicoke, as well as in North York.
Items stolen primarily include jewelry and electronics, particularly laptop computers.
Police suggest that clients should be advised to secure all valuables rather than simply hiding them.
Further, open house guests may be required to sign a registry and provide photo identification. It is important to monitor the guest registry to ensure it is legible.
Where possible, it is also advisable to have a colleague in attendance so that open house guests can be greeted and guided.
Members are reminded that occurrences may be reported to TREB so that advisories can be posted on TorontoMLS.
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MEMBER ALERT - W13 Open House Theft
April 13, 2010 -- A Member has reported that a theft occurred at an open house, which took place in the W13 district on Sunday April 11th.
Fifteen visitors toured the home, and all were asked to sign in upon arrival. Given that the Member watched those who viewed the property closely, it is believed that the home was targeted for the theft.
A Rolex watch and a small handheld camcorder, which were in a closet, were taken, as was a laptop computer located behind a credenza in a home office.
Police have been alerted to the incident and should further information become available, an update will be posted.
Members are advised to remind Sellers to secure their valuables prior to an open house and to request that visitors sign in with photo identification.
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MEMBER ALERT - Fraudster Posing as Out of Town Buyer
July 22, 2009 -- Members are cautioned to be on the alert for an individual posing as a buyer relocating to the Greater Toronto Area.
This scam was previously reported in March 2009.
On July 15, a Member in the N11 area received a page from a buyer interested in purchasing one of the brokerage’s listings, a $1.29 million property in the Warden and 16th Avenue area.
The buyer indicated that he was a medical doctor located in the United States. He stated that he would soon be employed at St. Michael’s Hospital and teaching at the University of Toronto, which he incorrectly referred to as St. George University.
The buyer indicated that he had relatives in Kuwait and would be referring another Kuwaiti doctor interested in relocating, to the brokerage.
After making arrangements to travel to Toronto, the buyer indicated that his briefcase containing his wallet had been sent to Toronto but that his flight had been diverted to a different city.
He requested that the Member wire him funds to complete his journey to Toronto.
When the Member offered to retrieve the buyer’s belongings from the airport so that he could purchase his own flight, the call was disconnected.
For information on similar phone scams and other types of fraud please visit www.phonebusters.com
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MEMBER ALERT - Lockbox Theft 38 Stadium Road
June 17, 2009 -- Members have reported that lockboxes have been stolen at a condominium townhouse complex located at 30 Stadium Road, near Queens Quay West.
A rail is located outside the complex for REALTORS® to attach lockboxes. Lockboxes contain a key fob to enter the complex as well as keys to individual units.
It is believed that the thefts took place between June 14 and 15.
It is estimated that there were 15 lockboxes at this location on June 14, with only approximately six remaining on June 15.
REALTORS® who have lockboxes at this property are advised to check on the status of their devices. Those who have been affected are advised to notify their clients and property management staff immediately.
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MEMBER ALERT - Tenant Contractor
June 17, 2009 -- A number of Members have reported incidents involving an individual who owes a substantial amount of money for non-payment of rent and incomplete contracting work.
The individual has signed rental agreements in various parts of the Greater Toronto Area including Willowdale, the Beach and Mississauga. He is being pursued for non-payment of rent by several REALTORS® and their clients who are landlords.
In at least one case, the individual has offered contracting services, requesting funds in advance for such work. The contracting work however, remained incomplete as the individual resided in the home while not paying rent.
The REALTORS® who reported this concern estimate that this individual owes more than $1 million to landlords and those who hired his contracting services. Affected individuals are believed to be located in Barrie and North Bay as well.
Members have filed reports with the Toronto Police Fraud Squad and court action is being pursued.
This individual is described as a 46 year-old male, black with fair skin, 6’1” tall with a medium build. He is married and has two sons ages five and seven, and is often accompanied by his family when viewing properties.
He is described as very charming and extremely familiar with the court system and legal issues, specifically tenants’ rights.
This individual is receiving social assistance payments and advised one landlord that he previously served time in prison for car theft.
He is believed to have a female relative who is also a REALTOR®.
Members who have concerns regarding this individual are advised to contact Toronto Police.
June 18, Update:
Another Member has reported that this individual and his family viewed a property listed for sale in the Victoria Park and Gerrard area.
He offered to renovate the house prior to purchasing it. That offer was not accepted.
He then offered to buy the property by assuming title and making a balloon payment after six months. This offer also was not accepted.
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Member Alert – Suspicious Buyer from Calgary
May 19, 2009 -- A Member has reported a suspicious incident regarding a buyer who indicated that he intended to buy a vineyard in the Niagara region and a condominium building in the Bathurst and St. Clair area.
The buyer viewed two vineyards, and indicated that he planned to make offers on both. He made special requests of the current owners regarding the vines, which were accommodated in anticipation of his offers.
Subsequently, the buyer disappeared, after advising his REALTOR® that he would return her call in 10 minutes. A week later, the buyer contacted his REALTOR® via email, indicating that he had traveled to the United States with the intention of purchasing property there as well.
As the buyer indicated that he was from Calgary, the REALTOR® checked with officials in that city. She learned that his property was on file due to excessive hydro usage and mould growth. She also discovered a Kijiji ad warning Calgary area brokers of him.
Although the buyer committed no offence, he caused tremendous inconvenience to many parties involved, as he did not proceed with intentions to purchase. He is described as being in his early 30s, 5’10” tall with brown hair and a medium build.
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Member Alert – False Buyer Disturbing REALTORS
May 4, 2009 -- A Member has advised TREB that an individual who resides in the W02 area has been reported to police for routinely serving as a nuisance to REALTORS® in the W01, W02, W07 and W08 districts.
The individual, who has a developmental disability, regularly visits open houses and requests information by email or phone on properties listed and sold.
It is believed that he also creates false email addresses using pseudonyms, and has used REALTORS’® names to contact other REALTORS®.
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Member Alert – SUSPICIOUS BUYER
April 24, 2009 -- A Member in the W16 area has reported a recent encounter with a suspicious buyer.
The buyer, a man in his mid-40s, requested that the REALTOR® pick him up at a rental apartment building in the W05 area.
The man, who was extremely knowledgeable about real estate requested to view rural properties listed in the $1-million range in the Orangeville and Midland areas. A woman in her mid-40s and a teenage girl also accompanied the buyer to the showings, the first of which lasted nearly 90 minutes.
The buyer was not able to provide identification and as a precaution, the REALTOR® was accompanied by an associate during the showings.
The appearance of all three individuals suggested that they were not in a position to purchase property however; the buyer indicated that he wished to place offers on both listings on behalf of his father, a Montreal-area entrepreneur.
The prospective buyer subsequently postponed arrangements to provide deposits for both properties.
The Member who reported this incident has been a REALTOR® for 20 years and indicates it was the most suspicious occurrence he has ever experienced.
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WEST AFRICAN SCAM UPDATE
March 24, 2009 -- A Member has reported a new version of the West African letter scam. Typically, this scam involves unsolicited letters offering an opportunity for substantial profit in exchange for help in funneling large sums of money out of countries such as Nigeria, Sierra Leone and most recently, the United Arab Emirates.
In the most recent occurrence reported, a REALTOR® corresponded by email with an individual posing as a prospective buyer from overseas. After the individual identified a property to purchase, he requested that the REALTOR® serve as his “private representative” and provide account information to deposit funds.
For more information on the West African letter scam please visit www.PhoneBusters.com. PhoneBusters is the Canadian Anti-Fraud Call Centre managed on a tripartite basis by the Ontario Provincial Police, the Royal Canadian Mounted Police (RCMP) and the Competition Bureau Canada.
PhoneBusters can be reached at 1-888-495-8501 or info@phonebusters.com
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Member Alert – Fraudster Posing as Out of Town Buyer
March 12, 2009 -- Members are cautioned to be alert to an individual posing as a buyer who is planning to relocate to the Greater Toronto Area.
The individual, who claims to be a doctor living in California, speaks fluent Arabic and targets REALTORS® of similar ethnicity. He makes arrangements to view properties in Toronto and subsequently claims that his flight has been re-routed to Florida. He then requests that the REALTOR® loan him funds to complete his journey to Toronto. Once the funds are received, his telephone is disconnected.
For information on similar phone scams and other types of fraud please visit www.phonebusters.com
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Member ALERT - Mortgage / Title Fraud
January 28, 2009 -- Members are cautioned to be on the alert for transactions involving mortgage/title fraud, as two separate incidents were recently reported.
The following circumstances are similar in both cases:
- The legitimate Seller is not occupying the house listed for sale.
- An offer with conditions is made on the property by a scammer posing as a Buyer.
- The offer is withdrawn shortly thereafter.
- The scammer/ buyer doctors the offer, leaving the names, price and address unchanged.
- The scammer/buyer applies to a financial institution, which then advances the mortgage funds, to another individual posing as the legitimate seller.
- Title is also changed to the name of the buyer/scammer.
- The Buyer and Seller scammers disappear once the mortgage funds are advanced.
- The REALTOR®, who is still marketing the house on the legitimate seller’s behalf, proceeds to enter into a transaction and then learns that the legitimate Seller’s name is no longer on title.
- All salespersons, representing listing and co-operating brokerages, are encouraged to regularly check title while marketing a property and/or entering into a transaction on the client’s behalf.
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MEMBER ALERT – HOUSE RENTAL
January 20, 2009 -- In October 2008 TREB posted a Member Alert regarding a scam in which an individual placed a house rental advertisement on Craigslist and Kijiji in an effort to fraudulently collect deposit funds. A Member has reported that a similar advertisement recently appeared again on Craigslist.
In the initial scenario, the individual advised prospective tenants that he had been transferred to Nigeria on business and as such, the house would be available for a long term at a reduced rate. In the most recent scenario, the details remain the same except that the fraudster claims to have been transferred to London on business.
Members are reminded that such occurrences can be reported to PhoneBusters, the Canadian Anti-Fraud Call Centre managed on a tripartite basis by the Ontario Provincial Police, the Royal Canadian Mounted Police (RCMP) and the Competition Bureau Canada.
PhoneBusters can be reached at 1-888-495-8501 or info@phonebusters.com
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Posted by Paul Indrigo
on January 9, 2012
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