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Investigators said the alleged mortgage fraud scheme was worth $12 million. (CBC)Police in Calgary have laid several charges in connection with a mortgage fraud scheme they say was worth $12 million.
Alleged ringleader Ali El-Sayed, 31, surrendered to police on his lawyer's advice July 29, the Alberta Law Enforcement Response Teams (ALERT) said in a release Thursday.
El-Sayed and his company, Ramses Holdings Inc., are charged with almost two dozen counts of fraud and one count of extortion in connection with a scheme police said involved 22 Calgary properties and eight financial institutions.
In their investigation, which began in 2008, ALERT enlisted the help of 12 witnesses who said they were defrauded.
Under the alleged scheme, investors were recruited as "mortgage nominees" — also known as straw buyers — police said.
They were asked to allow their names to be used for a mortgage in exchange for up to $5,000.
One of the properties involved in an alleged mortgage scam busted by police in Calgary. (CBC)The victims were assured that the mortgages would stay in their names for only six months.
But the alleged scammers then reneged, leaving the victims to hold the mortgages, investigators said.
Another person allegedly connected to the scheme, Christos Fotopoulos, 28, surrendered to police on Wednesday.
He faces three counts of fraud.
An arrest warrant has been issued for Russell Kilba, 34, who is also wanted for fraud.
The financial institutions allegedly defrauded include Scotiabank, TD Bank, ATB Financial, First National Financial, CIBC, Merix Financial, Royal Bank and MCAP Financial.
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