Licence revoked and $110,000 fine imposed for deceptive real estate dealings
Licence revoked and $110,000 fine imposed for deceptive real estate dealings
A Vancouver realtor has been fined $110,000 and had her licence revoked for professional misconduct related to deceptive real estate investment activities.
The BC Financial Services Authority (BCFSA) has found Wendy Mills and her personal real estate corporation guilty of breaching their duties to a client.
The BCFSA has fined Mills and her company $110,000, revoked their real estate trading services licences, and ordered them to pay an additional $5,000 in enforcement expenses.
BCFSA's consent order revealed that between 2018 and 2020, Mills approached a former client with a proposal to invest in a property purchase, renovation, and sale scheme. The client, whom Mills had previously represented in a Vancouver real estate transaction, gave her $60,000 based on the promise of an $80,000 return, including a $20,000 profit.
Despite making initial inquiries, Mills did not purchase the property. She falsely told her client that the property had been bought, renovated, and sold at a profit, and paid the client $20,000 in 2018.
When the client requested the return of the $60,000 principal, Mills proposed reinvesting it into another property with an additional $20,000 promised profit. Again, she falsely claimed to have purchased and renovated this second property.
Under pressure from the client and facing a lawsuit, Mills eventually repaid $70,500 of the $80,000 promised, covering the initial investment and the supposed profit from the second property.
Read next: Mortgage agent's licence restricted over fraud prevention failure
Throughout this period, Mills failed to inform her brokerage of these activities and did not deliver the client’s funds to the brokerage as required by regulations.
“Mills did not inform her brokerage of the real estate services she was providing, including the written agreements she entered into with the client for each property, and did not deliver the client’s funds to her brokerage, as required,” The BCFSA said.
“BCFSA holds real estate licensees to high standards and does not tolerate dishonesty and deception, even where licensees are tempted or pressured by personal circumstances. The disciplinary measures reflect the licensee’s failure to meet core responsibilities.”
Make sure to get all the latest news to your inbox on Canada’s mortgage and housing markets by signing up for our free daily newsletter here.
