On Monday June 30th, Judge Robert J. Nightingale found a mother and her two sons guilty on charges stemming from a “complex” mortgage fraud scheme that caused over $1.2 million in losses to four banks. Shan Lal was found guilty on two counts of fraud over $5,000 and one count of money laundering. Her son, Allan Mohammed, was found guilty of seven counts of fraud over $5,000 and one count of money laundering. His brother, Andrew Mohammed, was found guilty of uttering forged documents and two counts of fraud over $5,000. Andrew was acquitted on one count of fraud over $5,000
The investigation of this case started in 2008 when detectives responded to a single mortgage fraud complaint. Police officers eventually uncovered a scheme that involved five victims of identity theft (three from Kitchener and two from Hamilton), six residential properties (one in Hamilton, one in Simcoe), seven mortgages, and one line of credit. Three other co-conspirators involved in the scheme were charged and pleaded guilty in 2010 and 2011.
This scheme saw homes purchased cheaply and then sold at an inflated price to “straw buyers,” who obtained mortgages using stolen identification. The mortgages would immediately go into default, leaving the lending institution with significant losses.
“This was very sophisticated and one of the largest cases we’ve ever dealt with,” said major fraud unit Detective Duncan McCulloch.
Shan Lal, Allan Mohammed, Andrew Mohammed have been released from custody and are expected back in court on August 29th for sentencing submissions.