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TagToronto condo fraud

Posted 2 Comments on Condo fraud allegations grows to 9 properties Mortgage News

Condo fraud allegations grows to 9 properties

As reported last week, a property management company near Toronto has been linked to an alleged fraud on a massive scale.   Channel Property Management’s President, Manzoor Khan, has been charged with numerous counts of mortgage fraud and construction fraud that may total more than $20 million.

The Toronto Star has reported that the list of properties affected has grown from 4 to 9.    As more facts emerge, it seems like Mr. Khan’s lifestyle involved having 2 wives that are in Bangladesh.   It is also reported that Mr. Khan has fled the country and is also in Bangladesh.

The real victims are the individual condo owners.   We are talking about real people and families that have been crushed by this.  Their property values have dropped and their condo fees have skyrocketed.   The govt needs to step in now to help.

And what about other condo buildings… Could this be happening with other property management companies?   Right now, there should be a quick and fast audit being done by all condo corps.    This is probably an isolated incident but it would good to see the other Property Managers and condo corps make a public statement to calm the fears of current and prospective condo owners.

We will be following this story as it does not appear to be over yet… Channel Property Management said they managed around 40 properties, according to The Toronto Star.   And again, for the record, Mr. Khan and Channel Property have denied the allegations and have filed a statement of defence.

Posted 3 Comments on $20million condo fraud in Toronto shows need for more regulation. Mortgage News

$20million condo fraud in Toronto shows need for more regulation.

Reports have surfaced about a Property Manager that allegedly obtained fraudulent mortgage funds on behalf of 1,000 unsuspecting condo owners.   The Toronto Star reports that Manzoor Moorshed Khan, president of Channel Property Management, borrowed millions against at least five condo buildings, without the owners knowing about it.

Equitable Trust, a Canadian financial institution, says they were taken for $14million worth of fraudulent mortgages.  The Star reports that Khan falsified a series of legal papers to obtain the loans fraudulently.

In another situation related to the same property management company, it is alleged that Khan siphoned off some money through construction fraud.   Apparently, he tendered a bid for some construction work on one of the buildings he was managing through Canali Engineering, a company he created.  He submitted the lowest bid at $1.2million.  Then he inflated the bill to $1.3million… but his company never did the work.. he hired a sub-contractor to do the work at half the cost.

It should be noted that a statement of defense has been filed by Khan denying the allegations.

CBC.ca reports that condo fees in one of the buildings managed by Khan’s company has gone up from $340/mth to $780/mth….and the values have gone from $152k to $70k.

They say fraudsters cannot be stopped, only discouraged through regulations and laws.   Clearly, some more regulations need to be put in place.  CBC.ca quotes Dean McCabe, president of the Association of Condominium Managers of Ontario (ACMO), saying “there is no licensing or regulation of condo property managers.   Khan could manage condos next week, next month or next year”.   ( Yikes!  That’s a scary thought.)  Mr. McCabe is calling on the government to enforce licensing or regulation.

Channel Property Management manages upwards of 40 buildings….. We’ll report more on this story as it happens…