Duo accused of defrauding 10 people out of a collective $1.5 million
Two men were arrested by Montreal police last month for real estate fraud. They were formally charged in a Montreal courthouse last week.
Fifty-one-year-old Mark Blumenthal and 42-year-old Constantin Niphakis were arrested on November 15, 2022, in Côte Saint-Luc. They have allegedly defrauded around 10 people of more than $1.5 million under the business name, J’achète des maisons CA$H.
In English, this translated to ‘I pay cash for homes’.
Blumenthal and Niphakis allegedly presented themselves as investors looking to renovate homes and resell them at a profit, taking advantage of victims who Montreal police described were ‘often in a vulnerable situation’ and prone to accepting the quick opportunity for cash.
After the home-seller victims had agreed to the sale, Blumenthal and Niphakis brought them to sign the home-sale contract before a notary hired by the duo. They would then give the victims a cash payment allegedly representing a portion of the total sale price with the promise that they would hand over the rest of the payment after the house had been renovated. Blumenthal and Niphakis always gave a one-year maximum timeframe, Global News reported.
Read more: Types of mortgage fraud you need to know about
Montreal police also reported that to complete the real estate fraud, Blumenthal and Niphakis would then take out a substantial mortgage loan on the victims’ homes. They never renovated the homes as promised or made good on any of their fraudulent promises, eventually leading to the mortgage lender seizing the homes while Blumenthal and Niphakis took off with the mortgage loan amounts.
“Meanwhile, the victims are waiting for a second payment that will never come,” the Montreal police were quoted as saying in a French news release.
The police continue to scout for more information on the activities of Blumenthal and Niphakis and encourage people with information to call 911 or the Montreal Info-Crime line.
Read next: The four different types of mortgage
In the meantime, Montrealers were warned to exercise caution around real estate offers which appeared quick and advantageous, with other tips against real estate fraud and other fraudulent transactions available on the Canadian Anti-Fraud Centre website.
