Vilkhov Law has a dedicated team of mortgage fraud lawyers representing victims of mortgage fraud in Toronto. Our team of experts helps to identify, report and prevent mortgage fraud.

Our lawyers have years of experience in dealing with fraud cases in Toronto and are ready to help those who were harmed through fraudulent actions as well as those falsely accused of mortgage fraud in Canada.
What is Mortgage Fraud

Although most often, the victims of mortgage fraud are the lenders who provided the mortgage, they can also include buyers defrauded by unscrupulous mortgage brokers and creditors.

Examples of Mortgage Fraud

Most often, mortgage fraud is committed by the borrowers through misrepresentation in an attempt to obtain mortgage financing, which they wouldn’t have received if the information was accurate.

The examples of mortgage fraud in Canada are numerous and include various types of misrepresentation. In an attempt to secure mortgage financing, borrowers may use any of the following tactics:

  • declare themselves as full-time employees while working part-time or being self-employed,
  • misstating the income, job position, or the period of employment,
  • misrepresenting themselves as property owners,
  • claiming the property is owner-occupied while purchasing it for rental purposes,
  • misrepresenting the source or the amount of the down payment,
  • inflating the value of property to secure a higher mortgage,
  • omitting existing debt obligations or mortgage(s) in the new mortgage application,
  • adding co-mortgagees on the application who have no intention to take responsibility for the mortgage,
  • acting as a ‘straw buyer.’

However, these are not the only possible scenarios, as mortgage fraud can also include consumer frauds committed by lenders targeting real estate investors, homeowners facing bankruptcy, and other individuals in need of financing. The most common examples of consumer mortgage fraud in Canada include:

  • mortgage modification scams,
  • foreclosure rescue

Most Popular Schemes of Mortgage Fraud

Fraud for shelter. In many cases, borrowers may make false statements or misrepresent themselves to obtain a mortgage to get access to housing they cannot obtain otherwise for financial reasons. Such cases fall under the definition of ‘fraud for shelter.’ Although consumers may think that it is not a serious offence, fraud for shelter is a crime making those who provide false information or omit to provide information or otherwise misrepresent themselves liable for any defaults.

Straw buyer scheme. Another type of mortgage fraud in Canada, known as a ‘straw buyer scheme,’ is committed when a borrower involves third parties with good credit history and available funds to act as a buyer of the property in return for monetary remuneration. When the actual borrower defaults on the mortgage, the ‘straw buyer will be responsible for the consequences and can be criminally responsible for misrepresentation as well as for the entire debt even after the property is sold.

Syndicated mortgage fraud. Syndicated mortgages can start as a legitimate operation when a borrower attracts private investors to invest in a property and combines their funds to create a single mortgage. In many cases, investors are offered lucrative rates of return while their investments are backed by the underlying value of the property. Meanwhile, fraudsters often inflate the value of the property and use this scheme to walk away with investors’ funds.
Signs of Mortgage Fraud

Mortgage fraud is not always easy to spot as fraudsters deliberately falsify information to get mortgage financing or deprive the owners of their assets or title to the property. You might be witnessing fraud or an attempt of fraud if you are:

  • encouraged to provide false information on the mortgage application,
  • encouraged to apply for a mortgage that is higher than the property value,
  • discouraged from personally visiting the property or having it inspected,
  • offered a fee for the use of personal and credit information,
  • contacted by someone you don’t know to help with mortgage issues,
  • offered to sign a blank or incomplete application,
  • not receiving regular notices from your lender, tax authority or bills from the utility company.

How to Prevent Mortgage Fraud

Those who suspect that they became the subject of fraud should immediately consult an experienced mortgage fraud attorney. It is essential to read all financial documents and/or have the lawyer review them before signing.

When applying for a mortgage, it is the responsibility of the applicant to provide true and accurate information. It must be remembered that providing false or misleading information on a mortgage application constitutes fraud and is a criminal offence.

It is also essential to watch out for any signs of fraud and avoid taking any action that might make you the subject of fraud or liable for fraud. Those witnessing the signs of fraud as listed above should consult their lawyer without delay.
Mortgage Fraud Cases in Canada

With the prices for real estate on the rise, the number of mortgage fraud cases in Toronto and Ontario has been increasingly growing. The surveys run by credit scores agencies demonstrate that many Canadians confirmed that they would lie about their income on mortgage applications.

While many of those who would inflate their income to obtain mortgage financing to buy housing may sincerely intend to make mortgage payments, lying on a credit application or making other false representations constitutes mortgage fraud.

During the last years, Ontario has also faced numerous cases of consumer fraud by brokers targeting hundreds of unsuspecting individuals. One of the last cases was initiated by the Victims of Syndicated Mortgage Investments (VOSMI) collective, whose members lost millions as a result of syndicated mortgage fraud. Often, fraudsters target senior citizens who are susceptible to elder abuse and should be particularly cautious when conducting financial operations.
Penalty for Mortgage Fraud

The penalties for mortgage fraud depend on the type of fraud as well as on the severity of consequences. Those borrowers who provide false information to secure mortgages will be liable for financial losses in case of default and may be held criminally responsible. In a general case, the liabilities will include financial penalties imposed by civil action and criminal charges.

Criminal charges may include fraud, forgery, uttering forged documents, and procession of property obtained by crime in applicable cases. All of the criminal charges related to fraud are very serious and presume up to 10 years of imprisonment or even 14 years for serious fraud cases.

How to Report Mortgage Fraud in Ontario

Those who suspect that they face mortgage fraud should contact Canadian Anti-Fraud Centre and/or their local police department in Ontario.
When to Call a Mortgage Fraud Lawyer

Those who were subjected to fraud, suspect witnessing a fraud case, or notice any signs of mortgage fraud as described above, should contact experienced mortgage fraud lawyers without delay. It is also always advisable to consult with a lawyer before entering into any serious financial transactions or signing any financial document.

If you have been charged with fraud, please contact our criminal defence team.

By |2023-08-11T10:34:10+00:00May 21st, 2021|Fraud|

5/5 - (1 vote)

Criminal Lawyers Association
Toronnto Lawyers Association
Law Society of Ontario
Criminal Lawyers Association
Toronnto Lawyers Association
Law Society of Ontario
Excellent5.0 Based on 125 reviews fromJessie TeixeiraJessie Teixeira ★★★★★ I would like to thank Igor Vilkhov and his dedicated team for their professional assistance in dealing with my matter. I could not be happier about the way my matter was handled and am very satisfied with the result.Annabella FusaroAnnabella Fusaro ★★★★★ Igor Vilkhov was an amazing Lawyer. I met him through one of his colleagues and one thing I can say he fights for your rights and he doesn’t amazing job. He was so patient and kind with me. I’m very grateful for the outcome of my case. May god bless Igor And the amazing work he does.AnnabellaXuan LinXuan Lin ★★★★★ Hello my name is Leon I got charged with SA in 2021 in relation to a young complainant. I have been looking about 10 lawyer all of then is bad and lie all they care is money never help my case .Until I meet Igor I told him what happened he told me no worry he will try his best for help me . And this year May I won the case I just can't believe it Igor is best lawyer he is legendary . Guy you should believe in Igor he is really good. His preparation was meticulous and was acquitted. He saved my life.ChrisChris ★★★★★ The Best Lawyer In my opinion. A legal Tactician in the modern day criminal justice court systems. Very professional service. Great Techniques and Extremely knowledgable and Highly talented and recommended team.I’m 37 old Newfoundlander who is not well spoken but this was an easy to write.Nikolai Wheeler-BalazevNikolai Wheeler-Balazev ★★★★★ I want to start off this review by thanking Mr.Vilkhov for handling my case, Igor got my case resolved in a timely manor, i had previously been going to court for my case for about a year, and when i had gotten Mr.Vilkhov as my lawyer he had my case resolved and all my charges withdrawn in a matter of days. If anybody is looking for a lawyer i would urge you to go with Mr.Vilkhov, he knows what he is doing and knows how to do it quickly.Shannan HarrisonShannan Harrison ★★★★★ Mr. Vilkhov is an outstanding lawyer, I just avoided a lengthy jail sentence because of him. I literally cannot believe what he was able to do for me. The judge in court praised him for his work, thank you so much.Anoop RAnoop R ★★★★★ One of the best law firms in town! Highly recommended. Just retain them. They'll do the rest.ARRARR ★★★★★ I was falsely accused and charged with a serious offence. All it took was just one phone call from the complainant. As an immigrant, it was a nightmare. Fortunately Igor was the first person whom I contacted and I knew he was the one and I retained him. Beware of the lawyers who try to scare you, make you feel insecure. From the first phone call, he never made me feel insecure. He was confident that he can get the work done. Igor and Daniel promptly attended all my court dates. It took a while to achieve the resolution and finally my case was unconditionally withdrawn. I can't thank him enough. As Igor is a busy person, I was getting updates regularly from Daniel. I would give six stars to Daniel. Igor should never let him go. I would definitely recommend this law firm. You might sometimes feel that Igor is late in responding, but he'll be putting all his efforts behind the scene. Just have faith in him. I wish Igor and Daniel all the best.Brandon ABrandon A ★★★★★ Igor was fantastic to work with. He was always very quick to respond and answered any questions I had at any time during the process. I'm so impressed for his amazing and efficient work - he was able to have any charges against me dropped. I highly recommend Igor to anybody that's currently facing legal trouble. He truly exceeded my expectations and I'm so grateful for everything. Thank you Igor!Maria AgasMaria Agas ★★★★★ I was very impressed with his professionalism, swift responses and attention to detail. He was proactive and always communicated next steps. I’m so happy we came across Igor and his team. Igor is amazing and wonderful lawyer.Cindy LiCindy Li ★★★★★ I cannot express my gratitude enough for the exceptional legal representation provided by Igor. Facing wrongful accusations was a harrowing experience, but Igor's expertise and dedication swiftly turned the tide in my favor. He navigated the complexities of the case with professionalism, demonstrating remarkable intelligence and a deep understanding of the legal system. Thanks to his efforts, the charges were withdrawn in a timely manner, allowing me to move forward with my life. Igor is not just a good lawyer; he is an outstanding advocate for his clients. I wholeheartedly recommend his services to anyone in need of top-notch legal assistance.George ArellanoGeorge Arellano ★★★★★ Mr. Vilkhov got my charges withdrawn today after a very stressful time in my life. I hired him because of his reviews and I am not surprised that I got this result. I appreciate him and his team. Igor literally dedicates his entire life for his clients.Latch RamoutarLatch Ramoutar ★★★★★ I am sitting here at 10 Armoury street after my charges were just withdrawn. I cannot thank Igor enough for what he has done for me. This was supposed to be a trial where I was facing a ten year jail sentence. Somehow Igor got my charges dropped. This man is the lawyer you need, hands down. Also a very nice person.Emad MEmad M ★★★★★ Do not blink! Go with him.I know for stressful this process might be an how awful law system might be treating you, also how difficult it might be to trust someone with your “life”.Igor knows what he is doing and he saved my partner and I from false accusations of a jealous individual!He didn’t over charge, he didn’t hold back on any help a lawyer could possibly provide.This man is the best saviour one can ask for in these situations.Christa DuchenoChrista Ducheno ★★★★★ No kidding, if you need an attorney and You want the Best lawyer to defend you and your rights in the legal system I’d definitely recommend you call Igor Vilkhov.I am completely and gratefully satisfied with His professional guidance, knowledge of the complex legal system and most of all for saving my life. I give Igor and his Team my hands heart shout out Thank You for your dedication, I couldn’t have gotten through it without Y’all.Stephanie SchembriStephanie Schembri ★★★★★ Mr.Vilkhov thank you for keeping our family together we are forever gratefulAndreyAndrey ★★★★★ Highly recommend. Fast and reasonableRajveer SinghRajveer Singh ★★★★★ WaheguruKathryn GilfoyKathryn Gilfoy ★★★★★ john la magnajohn la magna ★★★★★ I had a great experience with Vilkhov Law. Igor was professional, efficient, and made my very stressful first endeavour into needing legal council as much of a breeze as it could have been.He was also very patient with me as a first time offender with way too many questions.I highly recommended Igor, and his team at Vilkhov Law!Norbert WysockiNorbert Wysocki ★★★★★ Igor and his team provided excellent service in very delicate and emotional case. They were extremely supporting and knowledgeable. Thank you for everything you have done!Jason WorthJason Worth ★★★★★ Words cannot describe what Igor has done for me. Igor is the most skilled and amazing attorney I have ever met in my entire life. I had a long list of charges (some that carried some serious penitentiary time) and worked some serious magic with countless hours behind the scenes for me to make just 1 appearance and have ALL THE CHARGES WITHDRAWN and a peace bond put in place. The timeframe for it was amazing as well he took care of me and this situation in only 15 months! (we all know the justice system does not work that fast normally!) If you want a very highly skilled, passionate, available(Igor would take calls and messages even after normal hours to fill me in!), experienced and dedicated attorney that will work tirelssly with you and for you to get you the absolute best results then Igor is your man! 5 stars does not do this man justice he deserves 100 stars!N -N - ★★★★★ Great lawyer. Knowledgeable and helpful. 10/10 would recommend :)GLORIS SPENCEGLORIS SPENCE ★★★★★ Working with Igor and his team during a very unpleasant situation has been a blessing. Even though the legal process was a lengthy one, they were there to answer the questions and concerns we had.Thankfully, it's all over and settled and hopefully we'll not need his services again, but it is reassuring to know that if the situation should every arise where legal counsel is needed, Vilkhov Law Professional will be there in my corner.Thank you.Scott K.Scott K. ★★★★★ I would like to give Igor 5 stars for handling my serious case for the last 11 months of my life. In December 2022, I was wrongfully accused of 2 serious charges under my name however, Igor took care of it from the beginning and finally all of those wrongful charges are withdrawn and now I feel much better and at ease. I am very glad that Igor could help me throughout the hard process and bring out the best result possible! Also, what I want to pinpoint out for the most is that he picks up the call by himself and you get to contact directly with him whenever you have questions or want updates throughout the process. I know that it could be tiring for lawyers who have other clients at the moment but Igor always keep a close contact with his client and I was always able to talk to him directly when I needed for the last 11 months. At last, I wish all the best for Igor and hope that god blesses throughout his career and may he be able to offer his professionalism to help other people in need. Thank you Igor :)js_loader

CONTACT US

“Caring, honest, and highly knowledgeable.”

Contact Igor for a Free Consultation!

Please contact us online for a free consultation.
Go to Top