By Dan Laxer
The Suburban
Montreal police have finally caught up with Adnane El Fehdi, the alleged kingpin of a real estate fraud ring that duped victims out of more than $5 million, many of them in the West End and West Island of Montreal. El Fehdi has been the subject of a manhunt since 2023. He was arrested in Malaga, Spain on February 7 and brought back to Montreal.
He is the 18th suspect arrested in a case that dates back to 2021.
The police made the arrest in collaboration with Interpol and Spanish authorities. El Fehdi appeared in court the following Saturday to face charges of fraud, conspiracy, and offences relating to the proceeds of crime. In November 2023, 17 other suspects – seven women and 10 men – were apprehended and faced similar charges. El Fehdi has been on the run since then.
Those arrested include a St. Laurent resident who was acquitted, and a Montreal-North resident who pleaded guilty, and was sentenced to 15 months to be served in the community, a $1,000 fine, and 50 hours of community service.
The crimes involved mortgage-free properties in Westmount, NDG, and Beaconsfield, and three vacant lots in Ile de Soeurs.
“Using false identification,” police said, “the fraudsters allegedly managed to pass themselves off as the owners of the houses and lots. They appeared virtually before a first notary to sign a power of attorney giving full powers of administration of the property to an agent who was part of the criminal network.”
They opened bank accounts under the real owners’ names, obtained financing from a private lender, then signed a mortgage with another notary. They deposited the loaned money into the fake account, then withdrew it soon after.
“The consequences of these real estate frauds were major,” the statement continues, “both for the affected owners and for the private lenders.”
This happens often, says Terry Kilakos of North East Real Estate and Mortgage Agency, but there are prevention measures. Before the Covid-19 pandemic he would insist on in-person, face-to-face meetings. “That one thing in itself goes a long way to preventing mortgage fraud.” Now, 95 percent of transactions are done online or by phone. “We still do our due diligence to make sure that we’re talking to the right person,” checking out properties, gathering ID documents, and verifying property registries. The credit bureau, Kilakos explains, also has fail-safes in place. On top of that, mortgage brokers have worked toward implementing Fintrac guidelines (Fintrac is the Financial Transactions and Reports Analysis Centre of Canada, the country’s financial intelligence unit). Committing fraud should be next to impossible. For crimes like these to occur, Kilakos says, there has to be multiple levels of complicity, from lenders to mortgage brokers to notaries. Or the unwitting help of less experienced professionals.
One of the best things people can do to protect themselves, Kilakos says, is to get title insurance, which protects both lenders and homeowners.
Police also recommend being wary of clients in a hurry, and of those who don’t ask questions, and learning to distinguish a real driver’s permit from a fake one.