Update: Alberta Justice says the below charges against Farhan Sattar and Santino DiMarzo were stayed on May 5, 2015.
Police have charged four people in connection to an alleged mortgage fraud scheme uncovered in Calgary.
Investigators suggest that an organized crime group aided and abetted a vast cross-section of Calgary’s underworld with fraudulent mortgages, potentially costing taxpayers and banks million of dollars.
It’s alleged the criminal group used fake companies to commit mortgage fraud by falsifying documents related to employment records, bank statements, credit information, and tax assessments.
“There were various versions of this crime,” explained Inspector Jerry Francois. “Primarily, this group would utilize ‘straw buyers’ to purchase homes using falsified documents.”
“They would profit from exorbitant service fees, inflated values of the mortgages and borrowing against the mortgages. The crime would then be continued by fraudulently purchasing additional homes.”
Police say over 20 homes located in Calgary, Fort McMurray and British Columbia were purchased with fraudulent mortgages.
These homes ranged in price from $300,000 to well over $1 million.
Police arrested four people on December 10th, charging them with:
Ricco King, 42, from Fort McMurray and resides in Calgary
- Obstruct justice
- Administer noxious substance (x 2)
- Identify theft
- Personation
- Money laundering
- Conspiracy to obstruct justice
- Conspiracy to commit fraud
- Instructing a criminal organization
Farhan Sattar, 35, from Golden, B.C. and resides in Calgary
- Obstruct justice (x 4);
- Sexual assault;
- Identity theft;
- Money laundering;
- Conspiracy to commit fraud;
- Instructing a criminal organization.
Jared Jenkins, 30, from Calgary
- Identity theft;
- Money laundering;
- Conspiracy to obstruct justice;
- Conspiracy to commit fraud;
- Commission of an offence for a criminal organization.
Santino DiMarzo, 30, from Calgary
- Money laundering;
- Commission of an offence for a criminal organization;
- Fraud (x 4).
Police allege four fraudulent companies were established by the group in order to obtain mortgages, including:
- Apex Medical Services Ltd.
- Petro-Alta Resources Corp.
- Harmony Skin Clinic Ltd.
- Nucity Homes Inc.
Members of the public who may have been in contact with these individuals or these companies are asked to review their mortgage with their lending institution and to monitor their credit rating.