Bank Perpetuates Mortgage Fraud On Helpless Victims
Brampton, ON Canada
In Summary:
Bank forced default on fraudulent mortgage by refusing payments from the Lee's, and evicted the Lee's using a judgment (in absentia) and a "Ghost Lawyer", neither of which the Lee's were aware of.
The Lee's family never avoided paying the bank--their home was important to them. This home was to be their last and final home. The Lee's followed direct advice given by their lawyer, David Dash, to pay until he could resolve the issues which he was somewhat responsible for. Upon his death, the Lees didn't know what else to do. Somehow, the information about Lee's problem with the bank got to the con man's nephew--he didn't want any part in this fraud. He contacted the Lee family and called the bank to get them to accept Lee's payments. He knew his uncle was defrauding the Lee's. The con man's nephew sent Lee's an email that CIBC and PC bank had invaded the Lee's privacy, giving out the Lee's bank account information to unauthorized 3rd party. Lee's were told that bank was running the show--the bank lied. The Lee's have proof that their account was not empty--they made 3 payments to the bank. (2 in November 2005 and 1 in Dec 2005 this; information is available upon request.) Last payment was made for Jan 2006 and then others were refused. The doctrine of estoppel) should apply here because the bank refused payments from the Lee's, though they made every attempt to pay. CIBC and President's choice bank cannot change their minds after refusing payments from the Lee's and then evict the Lee family. The banks representative also called the Lees to tell them in August 2006 that the Lee's were no longer being pursued by them. Lee's had no information from anyone further to this until in January 2007 they asked for the fantastic August news to be given to them in writing.
Unknown to the Lee's, after the good news of Aug 2006, the bank then sued them (in absentia--they had no knowledge of the suit being filed) and without a fair case, the bank obtained unfair judgment (1 2 3) on the Lee’s home. The bank used a "Ghost Lawyer" to help put the judgment on the Lee's home. Unaware of this Ghost Lawyer, the Lee's were told by a paralegal that they should request a letter from the bank about the August 2006 conversation for closure. Lee family contacted the bank in early 2007 and found a judgment instead. The Ghost Lawyer was contacted by the Lee's and he told them in writing that he never went on record and never corresponded with the bank or their law firm!
Shocked and extremely confused, the Lee's were forced to refinance as suggested by a lawyer they consulted. The Lee’s tried to re-mortgage but found their credit destroyed due to a fraudulent entry by the con man who stole their home. Lee's were also told by mortgage brokers that the bank had maligned the Lee’s by telling potential lenders that the Lee’s did not make payments since 2005 and the home was being repossessed-this is an outright lie! The bank had established that they do not want payments from the Lee's even though the Lee's tried to force the payments to be accepted. The fact is CIBC and President’s Choice (PC) Bank refused the January 2006 payment from the Lee's, telling them it was not their mortgage.
Stewart title’s original policy (with letter...note signature) states clearly there was no CIBC mortgage on the Lee’s home. Stewart title’s lawyer altered policy favouring CIBC when the Lee’s asked for help because CIBC demanded money. Lawyer instructed Lee's to destroy original policy (note different signature).
Now, due to this fraud/nightmare the Lee’s are going through severe stress, financial losses and income loss.
In trying to keep their home, the bank has made it impossible for them to ever forget this nightmare that has destroyed them. The home to the Lee’s is vitally important to their health. Both mother and child have severe illnesses that have caused them to land in hospital; child is home educated for that reason. The Lee’s have maintained their home by taking precautions to set their home so that their health is never endangered. The Lee’s have pleaded to the bank and did everything they could to prevent the bank from taking their home. The bank on the other hand could care less if their actions caused the family to suffer a loss of life. Even the con man's nephew sent a heartfelt letter to the Ombudsman for Banking pleading for the mess his uncle made to be cleared up, but it fell on deaf ears.
The Lee's were offered help by an associate. He guaranteed and assured the Lee's hat they had control, and he was saving them from harm. In March 2007, this associate told two lawyers Paul Mitchell and Michael Carlson that he was helping the Lee’s as a white knight. He then got on title to the Lee’s home with the understanding that he was helping to finance their home and save them from harm--to pay CIBC. The Lee’s had no choice but to accept the help. The con man’s fraudulent entry to the Lee’s credit damaged their ability to get financing. It didn’t help when the Bank threatened writ of possession, forcing the Lee’s to take help. Now because the Lee’s are in a helpless situation, everyone is taking advantage of them. The Lee’s life is a 24/7 horror story. Unfortunately, the associate can no longer finance the property; this friendly associate got greedy and extorted from the Lee's. The Lee’s are victimized over and over again and need help.
In April 2007, the Lee's wrote a detailed email to CIBC's Office of the President, and shortly thereafter received a reply stating the case was no longer being handled by them.
The Lee’s now have managed a written commitment for a second mortgage in Mr Lee’s name. This will bring CIBC up to date including CIBC’s legal fees but CIBC has said they want full payment. The Lee’s should not be going through all this. The mortgage is not theirs, and the bank has always told the Lee’s that the mortgage is not theirs. Why now is CIBC asking the Lee's to pay off the mortgage? CIBC forced the default in payments and told the Lee's it wasn't their mortgage and they didn't owe CIBC any payments!
Update: July 25, 2007
Unfortunately, the mortgage commitment fell through. The lawyer (Paul Mitchell of Jane Harvey & Associates in Yorkdale Mall) was paid to do the mortgage on the property (done by mortgage broker Kanwal Jit Singh 416-301-1976) but for some reason went on holiday and ended up taking 6 weeks for something that should not have taken more than 1 week; this delay caused them to lose the mortgage and ultimately be evicted from their home. Because of the delay, the lender (Home Trust) has cancelled and refused to deal with them. And, because of this, they've had to go to private lending institutions who are charging an 11-15% rate and they don't even know if they can get that.
As mentioned just now, the Lee's have been illegally evicted by CIBC 2 weeks ago contrary to the recent Ontario law that states home owners cannot be evicted in cases where mortgage fraud is suspected. Presently they are living out of their 1993 subcompact car with husband, wife, 12 year old daughter, and 2 small dogs. Their home is about to be put up for sale this Thursday (July 26) and although they've tried every avenue to clear this fraud, no one seems to be listening--they all seem to want to shut the family up and sweep this case under the rug.
Update: Sept 17, 2007
With a bit of help and questioning of the bank's tactics by the media, the Lees managed to stave off the home's sale back in July, but now it appears all avenues are closing fast and the home could very well be gone this week. Read their grassroots campaign email and forward the link to anyone you feel could influence the outcome.
Update: Oct 12, 2007
With some pressure and help from friends and counsel, the house still hasn't been sold. However, a large dumpster was placed on the driveway of the Lee's home this morning and it appears the bank is trying to dump anything and everything that remained after last month's packing spree (for which the Lee's were charged an exhorbant sum of $19,000+ in management & storage fees). A 'For Sale' sign could go up as early as next week. This is what the Lee's fear most and need this senseless action stopped.
In Detail:
In 2003, title to the Lee’s family home in Brampton was stolen. Con man took title in one name, and in 2004 took a President's Choice / CIBC mortgage in another name (using a slightly different spelling). BANK DID NOT DO DUE DILIGENCE. Con man conned law firm in Brampton stating he was paying the Lee’s in return for a business property he was buying from them. The law firm made the initial mistake which led to the fraud. A mortgage with a fraudulent signature dated Dec 31, 2003 was never brought up by the bank. Bank never gave us this information which came to us in an unmarked envelope. The lawyer responsible was ill with leukemia and promised his health would be better in spring of 2005; as such he vowed to resolve the matter without cost to the Lee’s. Unfortunately and unbeknownst to the Lee’s, he passed away before anything could be done, and no instructions were given to his partners at the firm.
In June 2005, while paying for groceries, a local A&P supermarket double swiped the Lee’s debit account. Lee’s got assurance from A&P that the money was put back. Mr. Lee contacted his bank and told them about A&P’s error. Unfortunately, A&P did not put the money back and with the overdrawn account the mortgage payment couldn’t be covered. As soon as the Lee’s checked their account and saw that A&P failed to refund the money, the Lee’s deposited money to cover the cost of the payment to PC bank. The Lee’s contacted PC mortgage bank and asked them to withdraw the money for July 2005. The bank said they couldn’t talk to them.
The Lee’s, being furious about the whole matter and deciding they had enough, went to Lands and Titles in July 2005 and saw information that shocked them. Lee’s then met with surviving partner of the deceased lawyer and was told that they were victims of mortgage fraud. Lawyer told Lee’s he would advice them on next step. Lee’s told lawyer to talk to bank about the fraudulent mortgage—Lee’s sent him email with information. Lawyer sent email back telling Lee’s to take title back to their home.
August, September and October 2005, PC mortgage bank took money out of the Lee’s account. Then PC mortgage stopped withdrawing payments in November 2005 and would not talk to the Lee’s. Lee’s put in 3 cash payments and at all 3 times faced rude, loud and abusive remarks by CIBC bank employees. Everyone at the bank watched the abuse and was sad that Mr. Lee’s home was at stake. Mr. Lee told the bank employees all he wanted was to pay the mortgage and not lose him home. The 4th payment for January 2006 from the Lee’s was refused by PC mortgage and CIBC. Both banks stated it was not the Lee’s mortgage and would not talk to the Lee’s about the fraudulent mortgage on their home.
The Lee’s took the advice of the surviving partner for the law firm that had initially made the mistake. In January 2006, Lee’s regained title to their home, free and clear. The Lee’s then asked about the loan on their home. The lawyer assured the Lee’s that they would not have anything to do with the con man or his fraudulent loan. The Lee’s asked the lawyer to go with them to the crown attorney and police, but the lawyer said there was no use in that. He advised the Lee’s to purchase title insurance.
Lee’s called and emailed the lawyer for insurance but kept getting put off. The Lee’s then purchased Stewart Title insurance from another lawyer. This lawyer assured the Lee’s that title insurance policy is what they can depend on. Lee’s got their policy showing no CIBC mortgage on home. Months later, CIBC demanded payment from the Lee’s. The Lee’s went to this lawyer to make a claim. Title insurance lawyer took information, altered original policy and inserted the fraudulent mortgage, reprinted a copy and told the Lee’s to destroy the original policy. Lee’s were shocked; every title insurance company they spoke to said this cannot be done!
In June 2006, a lawyer named Darryl Singer LLB represented himself as a litigation lawyer to us. He said he will defend us against KRMC/CIBC. Darryl Singer has since, according to CIBC's lawfirm KRMC, acted on our behalf without even informing us about the actions. We faxed Darryl Singer (the "Ghost Lawyer") after many frustrating calls to all his contact number. (After they were evicted in July 2007, the Lee's got information from KRMC that they had made affadavits making Darryl Singer the Lee's lawyer.) Contrary to KRMC, Darryl Singer sent a fax reply stating he never conversed with them!
Who do we believe? All we know is there was a court date and we were promised to have a lawyer "Darryl Singer" act on our behalf, and to defend us! Darryl Singer made so many denials in his March 2007 fax to us, we have no idea what is true now. All we know is we as a family helped Larry Lee run for City Councillor for Brampton ward 5--Larry was always available to talk to anyone.
Later in July 2006, the Lee’s communicated with PC bank and eventually got an unofficial email for payment along with a huge legal bill. Lee’s felt it was not fair. Then in Aug 2006, PC bank called, left voice message stating for the Lee’s that the Lee’s were not on the mortgage; bank couldn't talk to Lee’s and Lee’s were not responsible for the mortgage. Family and friends were delighted to hear the bank’s representative’s voice message.
This experience put unbelievable stress on the Lee’s family and their young, home educated child. The Lee’s were so frazzled they could not even celebrate Christmas. Then in late Jan 2007, CIBC informed the Lee’s that a judgment to take their home was obtained by the bank in October 2006. The Lee’s were incredulous since CIBC/PC bank never told the Lee’s of a court date! The bank said they had told our lawyer. The Lee’s tracked him down only to find out that this lawyer never corresponded with the bank or its legal representatives. Now the Lee’s are devastated and worried. They were being re-victimized over and over again in trying to resolve the matter. In an attempt to pay off the bank, bank maligned the Lee’s stating they did not make mortgage payments since 2005! This greedy mortgage broker tried to force the Lee’s into a terrible mortgage to pay off the bank. He threatened the Lee’s and stated that if they didn’t take the offer from him, he would tell all the other 86 lenders and the Lee’s will never get a mortgage!
The Lee’s know they are not as big and strong as the bank. What the Lee’s know is that if this is allowed to happen, then what use is the recent Ontario legislation to protect home owners from Mortgage Fraud? The answer to the Lee’s dilemma is to go to another lawyer.
At this point, the Lee’s will gratefully accept any and all support from people who can assist in this case, financially or advice-wise.
Thank you for your time to read the Lee’s story.
The Lee Family
Brampton/Toronto, ON Canada
Tel: 647-866-9945 (cell)
