He admitted to working with an unregistered broker to secure loans
A former British Columbia Realtor has surrendered his licence after admitting to using fraudulent documents to secure a $2 million mortgage.
Jin Luo, previously with ReMax City, also acknowledged hiring an unregistered mortgage broker to assist with falsified applications for two Vancouver properties, according to the BC Financial Services Authority (BCFSA).
In a consent order signed in September, Luo admitted to creating fake income and savings documents to support mortgage applications. Luo agreed to pay a $5,000 fine and relinquish his real estate license as part of the disciplinary action.
The scheme involved a man identified only as "Jay," who was accused of assisting several real estate agents and mortgage brokers in obtaining fraudulent mortgages. Authorities said Jay, whose real name was redacted from the report, provided Luo with counterfeit bank statements and income tax documents for two Vancouver properties.
Jay, a former submortgage broker, had his license suspended in 2008 for submitting false information to lenders and has not been registered since. Luo reportedly met Jay at an open house but did not verify his credentials before engaging his services.
Fake documents
The investigation revealed that Luo used Jay’s services in late 2015 to obtain a mortgage for a $2.18 million home in Vancouver. Luo provided Jay with financial documents, which were used to create fraudulent materials, including a fake TD savings account statement with a balance of nearly $900,000 and falsified income tax documents indicating an annual net income of $250,000.
The application, submitted by a registered mortgage broker, led to the approval of the mortgage in January 2016.
Luo also used Jay’s services to refinance a second Vancouver property. This time, fake documents included a savings account statement showing a balance of $98,000 and tax records stating an annual income of $210,000. A second registered mortgage broker submitted this application, which was approved in 2016. Luo reportedly paid Jay $25,000 for his services in both cases.
Anonymous tip
The scheme came to light after the BCFSA, then known as the Financial Institutions Commission of BC (FICOM), received an anonymous tip in 2017 alleging that Jay was assisting real estate professionals and mortgage brokers in obtaining funding through fraudulent means.
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A 2019 investigation into Jay’s home uncovered an Excel file titled “Work Flows 2018,” which listed Luo’s name and details of the two properties involved. Shortly after, regulators issued a cease-and-desist order, barring Jay from conducting business as a mortgage broker, whether registered or unregistered.
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