Two cash home buyers were arrested on November 15 following they were suspected of having a connection to a real estate fraud, the victims of which are homeowners looking to sell their property quickly.
Mark Blumenthal, 51, and Constantin Niphakis, 42, were apprehended in Côte-Saint-Luc by the Service de police de la Ville de Montréal (SPVM).
They appeared Thursday at the Montreal courthouse and face charges of fraud.
“The alleged fraudsters, who run a business called ‘I buy CA$H homes’, allegedly caused losses amounting to more than $1.5 million to a dozen victims,” Montreal police said. by press release on Friday.
The fraudsters presented themselves as investors who buy houses to renovate them and resell them for a profit. They then dangled the possibility of a quick transaction to their victims.
“The victims then find themselves before a notary or a lawyer chosen by the fraudsters, in order to sign a sales contract. On site, a percentage of the sale price is given to them in cash. We also explain to the victims that the rest of the sale price will be paid to them following the renovations and the resale of the house, at the latest in one year, ”he explained.
A mortgage loan is contracted in parallel by the fraudsters with a private lender. However, they fail to meet the conditions and do not carry out the planned work.
“In the end, the house is seized by the company that granted the mortgage. Fraudsters leave the adventure with the mortgage money in their pocket, while the victims wait for a second payment that will never come.
Anyone with information regarding the activities of Mark Blumenthal and Constantin Niphakis is encouraged to contact 911 or their neighborhood station. It is also possible to communicate anonymously and confidentially with Info-Crime Montréal at 514 393-1133 or via the reporting form available on the infocrimemontreal.ca website.