Real estate broker’s registration revoked after RECO investigation – Dec. 2012

Licence Appeal Tribunal rules evidence uncovered mortgage fraud

July 26, 2011 (TORONTO) – A Toronto real estate broker‘s registration was revoked after Ontario’s Licence Appeal Tribunal (LAT) ruled that he had been involved in “dishonest activity” and “mortgage fraud”.

The tribunal upheld a proposal issued by the Registrar of the Real Estate Council of Ontario (RECO) to revoke Pervez Tagari’s registration following an investigation into several real estate transactions in 2006 and 2007.

The activity was first flagged by a diligent real estate professional who was familiar with one of the properties and became suspicious due to the inflated listing price, LAT was told. RECO investigators were called in to review the transaction. The tribunal was told a home sold for $484,000 less than two weeks after it had been purchased from another seller for $305,000. After the buyer defaulted on a bank loan, the property eventually sold under ‘power of sale’ for $290,000. The tribunal concluded that there was no dispute that the purchase and sale of this home involved mortgage fraud.

RECO’s lengthy investigation involved nine different real estate trades. Tagari appealed the Registrar’s proposal to LAT which led to a hearing earlier this year.

The LAT decision stated that there was a pattern to Tagari’s behaviour, including making false and misleading statements as to renovations and other features in listings, setting inflated prices, assisting purchasers in obtaining mortgage financing using false documents, and forging signatures.

“The tribunal finds that the evidence of the (Tagari’s) dishonest conduct is substantial and concludes he is disentitled to registration,” the decision states.

RECO is responsible for administering the Real Estate and Business Brokers Act, 2002 (REBBA 2002) and associated regulations on behalf of the provincial government. In order to trade in real estate in Ontario, brokers and salespersons must be registered under REBBA 2002.

 


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