CBC News - Calgary - Bank of Montreal alleges huge mortgage fraud

CBC News - Calgary - Bank of Montreal alleges huge mortgage fraud

The Bank of Montreal reveals a huge mortgage scam being investigated since 2006. It is suing some of its employees as participating. It seems not so long ago that banks were providing mortgages on false documentation without checking with the real owners and then trying to seize the properties when the fraudsters fled. At least they admit that some of its own employees are responsible for facillitating the fraud.

There are other schemes including fraudsters offering to help individuals take out their registered funds and invest in high return schemes without incurring tax. As many vicitmds have found out after their money has disappeared, Canada Revenue expects to tax any withdrawals because the registered plans are simply tax deferral plans. One would hope the inancial institutions should be aware of these schemes and alert its customers when withdrawals exceed a 5% limit.

Al Rosen is absolutely right when he says regulation is lacking.

SIPA recommend a new national regulator for all financial institutions and not just a national securities regulator as proposed by Government. Surely Goverment knows there are issues with regulation of banks and insurance companies. But the problem is even greater. Fraud is a pandemic in Canada. The real issue is that Canada is soft on white collar crime.

The financial crooks need more than jail time. They need to be held responsible for the losses of their victims. They should be forced to spend the rest of their lives paying back their vcitims. They should not be allowed to get off the hook by declaring bankruptcy.

Wake up Canada. Stop the games that financial fraudsters play. Spending a year or so in jail will not discourage fraudsters. Canadians are busy with work and family responsibilities and have not the time to become knowledgeable in medicine, dentistry, plumbing, auto repair, or financial iinvestment. They need to be able to depend upon service providers. Government needs to ensure that service providers are regulated.

Because savings and investments effect all Canadian futures it is essential that the fiinacial services industry is held to a fiduciary standard and puts client's needs first. To even think that Canadians should be responsible for becoming sufficiently educated to look after their own investments is unreal. The complexity of products and the market are beyond the ken of most representatives full time in the industry. How can Canadians earning a living with family responsibilities be expected to gain the knowledge to fend for themselves.