Bank Officials: Mortgage Fraud

mortgage fraud: The bank first detected a problem in 2006, when bank officials detected "irregularities" in some mortgages. Forensic accountants were hired to review the transactions, and the bank ultimately sued hundreds of people in connection with the alleged fraud, according to CBC. Sources tell News all but a handful of the 160 parties sued have reached financial settlements with the bank and The Bank of Montreal has settled with all but a handful of the 160 parties it sued in connection with a sprawling case of alleged mortgage fraud in Alberta, News has learned. BMO says hundreds of people, mostly new immigrants, were recruited to apply for about $70 million in falsely inflated mortgages involving more than 200 properties between 2006 and 2007. BMO contended the alleged fraud was carried out by 325 people, including mortgage brokers, appraisers, realtors, bank employees and lawyers. (www.immigrantscanada.com). As reported in the news.