Montreal police say two males have been arrested final month in reference to actual property fraud and appeared in a Montreal courthouse on Wednesday to be formally charged.
In a information launch, Montreal police stated Mark Blumenthal, 51, and Constantin Niphakis, 42, have been arrested on Nov. 15 in Côte Saint-Luc for defrauding round 10 individuals of greater than $1.5 million.
In line with police, the duo runs a enterprise referred to as J’achète des maisons CA$H or, translated into English, I pay money for properties.
The pair would current themselves as traders trying to renovate properties and resell at a revenue.
Police allege they’d entice potential householders with the prospect of a fast transaction.
“They have been usually in a weak state of affairs,” police stated of the victims.
After signing a gross sales contract in entrance of a notary or lawyer employed by the pair, the sellers would obtain a money fee on-site representing a portion of the full sale worth.
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Police stated the victims have been instructed they’d obtain the remainder of the fee after the home was flipped however inside a one-year most time-frame.
As a part of the scheme, police stated the alleged fraudsters would additionally take out a major mortgage mortgage with a personal lender with out ever renovating the house or fulfilling any of their obligations.
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Consequently, the lending company would seize the property whereas the alleged fraudsters made off with the cash obtained by way of the mortgage.
“In the meantime, the victims are ready for a second fee that can by no means come,” police wrote in a French information launch.
Police are asking anybody with data on the actions of Blumenthal and Niphakis to name 911 or the Montreal Data-Crime line at 514-393-1133.
Not one of the allegations have been confirmed in courtroom.
Police are warning Montrealers to train warning in relation to actual property transactions.
“Beware affords that appear fast and advantageous,” police stated.
Additionally they suggest coping with professionals you’ve chosen your self and who you belief.
Different tricks to shield your self can be found on the Canadian Anti-Fraud Centre web site.
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