CALGARY — The Bank of Montreal’s lawsuit against hundreds of people in an alleged $70-million mortgage scam is just the surface of an industry-wide problem, says a forensic account.
Greg Draper says the sheer size of this alleged scam is making news, but he says the same thing is happening on a smaller scale at financial institutions across the country.
The Bank of Montreal (TSX:BMO), in documents filed in court in Calgary, is suing lawyers, mortgage brokers and even some of its own staffers.
The bank says the scheme involved fraudsters targeting undervalued houses in upscale neighbourhoods.
They would then falsify documents to get the bank to give them a mortgage worth far more than the actual value of the house and pocket the profit.
The bank is not commenting on the lawsuit, and the allegations have not been proven in court.