'I have done nothing wrong' - Macleans.ca
 

‘I have done nothing wrong’


 

The CBC, Sun and Canwest detail allegations of mortgage fraud involving Conservative backbencher Devinder Shory. Mr. Shory has released a statement this evening, which reads as follows.

“Through media stories, it has come to my attention that I have been named in a civil matter. I want to state that I have not yet been served with a statement of claim. When I am, I will defend myself vigourously against these accusations. I have done nothing wrong. As the matter is before the courts, I have no further comment at this time.”


 
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‘I have done nothing wrong’

  1. Well if the vague word of private investigator heard third hand and not verified with either the PI or the subject cabinet minister and no internal investigation, is enough to get your own leader to you thrown out of cabinet, out of caucus, have the PM launch a criminal investigation AND an ethics probe… then surely there is no bus big enough for Harper when one of his lowly backbench MPs is named in connection with a mortgage fraud!!

    • So, if I read you correctly, we should stone him first before we have a fair trial.

      • You read him wrong. What's he's saying is that Harper should stone him first, before we have a fair trial… of course, that's only if Harper's being consistent.

      • You read me wrong.

  2. This one could prove interesting. Fortunately, BMO will be most forthcoming with the actual paper trail on this deal and we'll not have to wait for the Canadian press and the Opposition to drag out each tiny piece of evidence one page at a time over several weeks.

    http://viableopposition.blogspot.com/

    • And I have a feeling this guy is going to be guilty as charged !!

      • Civil action, not criminal. And the fact that BMO let it leak to garner maximum sensational headlines before actually serving defendants with originating process is not usually a great sign for the legal strength of their claim, for what it's worth.

        • Where was the leak? The documents were filed in court so they are public. With such a large claim, BMO would have an obligation to issue a press release as well under securities laws. How do you know the defendants have not been served? None of that has anything to do with the strength of their legal claim.

          • avr, you are right is a civil action but at the end of the day is fraud. And I am just speculating here, it is just a feeling that he is going to be in big trouble, and that's unfortunate!
            The opposition is going to go for it, they are going to talk about this for weeks to come, and that's unfortunate too!

  3. This story is weird all over.

    BMO falls for inflated assessments? To the tune of over a hundred million? Why did I have to pay hundreds of dollars for my bank to assess the market value of my own soon-to-be-mortgaged property if banks don't actually do the job? Legitimate BMO mortgage customers might want to apply for their money back on that scam.

    The perps thought a bank wouldn't start to sniff around after it started getting stuck with a collection of foreclosed junk properties? A LAWYER wouldn't figure out the risk was a little too, well, risky?

    Bringing in hundreds of people to defraud a major bank wouldn't make a ringleader a teensy bit worried that the secret might get out? A LAWYER wouldn't figure out the risk was a little too, well, risky?

    If these allegations are proven in court: Ah, criminal minds, not the sharpest knives in the drawer…

  4. Weird thing is this story has not made front page news in Edmonton or Calgary. go figure!

    • It should be in tomorrows paper (May 6th) but it was on the news.

  5. Inflated assessments are illegal? If so, shouldn't every real estate agent be in jail? :)

    I visited a dump of a house for sale this afternoon. I can't believe what some people are paying for these homes. Every house's sale price seems to be at least a little inflated.

    their incomes were distorted to make them look more likely to be approved for the mortgages. Again, I don't believe this is uncommon… it seems mortgages are handed out under the fishiest of circumstances. Bank employees are rewarded for awarding mortgages, and fudging numbers to a certain degree has become commonplace.

    • If one deliberately misleads the bank about the value of property used as collateral, maxes out the line of credit, and then defaults, the bank is left with more exposure than they bargained for (i.e., the foreclosed home, for example, won't come close to covering the defaulted loans), and it amounts to theft.

      And I assume that even without defaulting, it's illegal to deliberately mislead a lender about collateral value. I'm also betting 'buyer beware' doesn't apply to banks (even though it possibly should).

      That said, I've had bank reps more or less wink and say they could bump the value of our home up if we needed, for a larger line of credit (we didn't want it). Not grossly above true value, but certainly a bit higher than reasonable. But I suppose these things are rarely tilted in favour of the individual, as compared to the corporation.

    • Civil fraud is different than criminal fraud. In very simple terms it is merely the intentional deception made for personal gain.

      The Common Law has defined various elements or criteria for finding fraud including: what representations have been made about facts; how material and true or false or misleading were the representations; whether the fraudster knew the representations were material and false or misleading; whether the fraudster knew the victim would rely on those representations; and whether the victim suffered damages as a result of relying on the false material representations.

  6. "Every house's sale price seems to be at least a little inflated."

    I sold my home a few weeks and was delighted that home prices are inflated at the moment.

    However, I am not so delighted now that I am buyer because It is bad time to buy at moment – gov't eliminating certain types of mortgages are coming in July, higher interest rates in the near to medium future, hst in Ont – are creating a seller's market. People are trying to buy home before summer changes take affect.

  7. It seems the Eastern press will report any rumor accusation without a thread of evidence .allegations have to be proved in court.All print media does is offer an apology on the last page.freedom of the Press has ruined many lives

    • No one's saying he's guilty.

      If someone who has been elected to represent us is accused (with a decent amount of evidence) of having committed a crime, it is in the public's interest to hear about it. We don't wait to see court verdicts until we get reporting on significant stories like this one. Not that this is earth-shattering by any measure, but government officials freely choose to lead a public life, so complaining about it when it really looks like one of them committed fraud rings a bit hollow.

      And what's with the "eastern press" business? I lived in the west for over half a decade, and I can assure you that the media is no more principled or restrained over there than it is back here.

      • How about restrained but not principled?

    • Sort of like our Prime Minister.

  8. One, two, three, four, Mr. Shory, out the door!

  9. The statement of claim can be found here: http://documentcentre.eycan.com/eycm_library/BMO%

    The alleged frauds appeared to have occured in the 2006-2007 period. For single family detached – the peak in Calgary was Aug 2007. http://www.chpc.biz/Major_Cities_Chart.htm
    Had the Calgary market continued on the same trajectory upward (like Vancouver)- which starting around Oct 2005- perhaps there would be no lawsuit- ie a couple of years later, the houses could have sold for their inflated appraised values when mortgaged to the 2006/2007 "strawbuyer".

    Were people being too optimistic in this whole scheme by assuming housing prices could only continue to go up? Sounds familiar.

  10. I didn't know the readers of paper did not graduate from high school lol

    Anyone who knows anything about law knows that the victim will sue anyone involved in the fraud because most professions carry liability insurance.

    Mr. Shory is only one lawyer of the 17 lawyers who are being sued. The lawyers will likely have their cases dismissed.

    The scum in the case is the people who did the fraud.
    I looked at how many people agreed with some of the posts and shake my head lol.

    • Doesn't relieve him from losing a lawsuit due to negligence – failing his professional duty of care – lack of due diligence.

      I had the same initial reaction as you did. Until I read this passage in the CBC report:

      The documents show Shory did not disclose to the bank that he was involved in a transaction involving a straw buyer.

      In its lawsuit, the bank says the fraud's "central participants" arranged the "skip transfer." Using a skip transfer is a common method of falsely inflating the value of a property.

      "In this case, the title to the property never was in the name of the central participant, but rather, went directly from the original owner to the straw buyer."

      An affidavit sworn by Paul Hitchcock, the bank's head of security, refers to an April 19, 2007, letter from Shory to another lawyer, discussing a skip transfer.

      "We confirm that this is a skip transfer, as such, we will be passing trust conditions imposed on us by the actual vendor's solicitor and will confirm undertakings based upon undertaking received from actual vendor's solicitor," the affidavit says.

      The bank claims Shory had a legal duty to disclose this skip transfer or side deal because it's a precursor of fraud.

      • A skip transfer could also be a parent fronting the mortgage, and then transfering the title into their kids name(?)
        That happens regularly.
        I've done it twice, with the banks knowledge, and the bank said 'we don't care who is on title as long as you hold the mortgage'……

        • Except, in your case, the bank probably had a prior relationship with you or were able to confirm your credit worthiness. In this case, the strawbuyers allegedly had falsified income numbers – and the bank officials were allegedly in on the scam. I presume it is your lawyer who would have assisted in preparing some of your documents. If so, the bank officials would have relied in part on them in processing your application.

        • Surely you aren't claiming this is the same thing.

  11. Coming to QP theatre – a sensational new feature!

    Get Shory

  12. A suddenly humorous and ironic link on page 1 ofhttp://devindershory.ca/

    "Conservatives Stand Up for Victims of White-Collar Crime" [May 03, 2010]

  13. A suddenly humorous and ironic link on page 1 ofhttp://devindershory.ca/

    "Conservatives Stand Up for Victims of White-Collar Crime" [May 03, 2010]

  14. With his name on 4 of these files, given his knowledge and training in the field, perhaps Mr. Shorey ought to have at the very least raised an eyebrow. It is difficult to imagine that he was purely an innocent victim, and that he did not know his clients to the extent that they were doing something illegal.

    Maybe he needs to spend more time on his practice and less on politics, or the the other way around. Either way they should release all the names and not just single him out.

  15. With his name on 4 of these files, given his knowledge and training in the field, perhaps Mr. Shorey ought to have at the very least raised an eyebrow. It is difficult to imagine that he was purely an innocent victim, and that he did not know his clients to the extent that they were doing something illegal.

    Maybe he needs to spend more time on his practice and less on politics, or the the other way around. Either way they should release all the names and not just single him out.

    • Read all the names in the Statement of Claim link I provided earlier.

  16. Coming to QP theatre – a sensational new feature!

    Get Shory

  17. Devinder Who?

  18. Another day, another sleazy Conservative scandal.

    • Speaking of sleazy scandals, how about Derek Lee and his lobbying for foreign interests? Another Liberal enriching himself at the expense of Canada.

      • Nice Con war-room sound bite but if Lee did anything wrong the ethics commissioner should be able to determine this since the Conservatives have already put so much faith in her for their previous scandals this year.

        Comparing participating in alleged multi-million dollar fraud, where the accused MP is a defendant against a major bank, with a nebulous accusation of "lobbying for foreign interests" (which could turn out to be merely inaccurate text on a webpage) is a bit of a stretch. But then again die-hard Conservatives such as yourself, sourstud, never lack in irrationality.