Montreal police, Interpol and Spanish authorities arrested a man who allegedly spearheaded a vast real estate fraud ring in Malaga.
Adnane El Fehdi, who was on the run, was extradited to Montreal last Friday. The 36-year-old appeared in custody on Feb. 8 at the Montreal courthouse to face charges including fraud and conspiracy.
This is the 18th arrest in connection with the fraud ring, which started in 2021 and amassed more than $5 million.
In November 2023, 17 suspects, including seven women and 10 men aged between 22 and 60, were arrested. Depending on their involvement in the scheme, they faced charges like fraud, money laundering, receiving stolen property and conspiracy.
Fake homeowners
Police say the ring targeted five mortgage-free properties: two rented homes in Westmount and Beaconsfield, and three vacant lots on Nuns' Island. Using fake documents, the fraudsters were able to pass themselves off as the owners of the houses and land, according to police.
They would then virtually appear before a notary to give full powers of administration over the property to an agent who was part of the criminal network.
Meanwhile, the scammers also opened an account in the name of the real owners at a financial institution. The agent then obtained financing from a private lender and signed a mortgage deed with a different notary.
Once the loan money had been deposited in the fraudulently opened account, the suspects were quick to withdraw it.
The consequences of these property frauds were major, both for the aggrieved homeowners and for the private lenders.
Ways to spot scammers
Montreal police say notaries, estate agents, mortgage brokers and private lenders can help prevent this kind of identity fraud.
For example, it’s important to learn to spot fake driver’s licences and check their validity via the SAAQ, do thorough background checks and be vigilant when a power of attorney is used.
They should also beware of clients who demand virtual meetings to avoid coming into offices and who do not ask any questions about loan terms and fees.
Owners of rental properties should also be careful as, in this case, the two houses targeted were initially rented by suspects using false identification.
