Doug Lytle

The quick action of Sutton Group – All Pro Realty in Peterborough, Ont. saved a retired Anglican priest from becoming a victim of mortgage fraud recently. Their story demonstrates the importance of experience, tenacity and public awareness to prevent crime. It began on Feb. 22, when a Toronto law firm contacted the Sutton office to ask about a commission. Administrator Gail Fulton could not find any trace of the transaction so she spoke with Doug Lytle, the manager at her brokerage.

“Gail is meticulous with her record-keeping so when she couldn’t find evidence of the sale, I started calling other agents and checked MLS,” says Lytle. “We were suspicious but what really tipped us off was a fax from a second lawyer’s office. It was a copy of a receipt for a $10,000 deposit cheque showing our brokerage name and the buyer’s name, which turned out to be fraudulent, and signed by someone claiming to be an accounts clerk for our company. We don’t have an accounts clerk.”

Lytle approached his broker, Dennis Roberts, who contacted FINTRAC, the federal department responsible for the prevention of money laundering. Although FINTRAC requires brokers to report suspicious activity, they had no immediate plans to investigate, Sutton Group says. Next, Dennis phoned the Toronto police department’s financial crimes unit but was told it is a lawyer’s responsibility to call the police. Unwilling to let a potential crime unfold, the broker finally phoned the Real Estate Council of Ontario (RECO). Early the next week, Brian Prendergast, a representative from RECO, drove out to the house, says Sutton Group.

Dennis Roberts

“The real owner was a retired Anglican priest in his eighties,” says Roberts. “He lived in that house for more than 30 years. He was shocked to hear that his house was in the process of being sold. The criminals were trying to get a $600,000 mortgage against his home. If the deal finalized, it would be a huge hassle for him to clear it up.”

At this point, there were only hours left before the property title would be transferred and a $600,000 mortgage granted. The land transfer office was on the verge of certifying the transfer when the RECO representative halted the process, informing them of fraud.

“We highly recommend that people get title insurance and check their credit frequently,” says Roberts. “Identity theft insurance can also help since these criminals used fake ID.”