“I work in the insurance industry and I see a lot of suspect transactions.”

‘Kim Jong-il buy 3’ at vancouvercondo.info June 29th, 2010 at 4:46 pm –

“I agree about all the money laundering in the lower mainland but none of the people I suspect are foreigners, all are greedy locals. I work in the insurance industry and I see a lot of suspect transactions. A common one: People buy properties in company names to avoid paying tax on the retained business income, fine, but then they declare the other residence they own personally as a Principle Residence so they remain capital gain tax free. Others who even when the move out, request that we don’t change their mailing address because they don’t want CRA to know that they don’t live in the residence anymore. I had one client request that we back date her insurance policies to show a multi million dollar vacation home as her principal residence after she was audited…sure…let’s commit fraud together…WTF. I’ve seen a twenty something woman pay cash for her Fraser Valley Insurance renewals (about $2,000) suspicious because we are located in Vancouver and nobody ever pays cash. Probably growing tomatoes. One thing I have noticed lately, locals are leaving. I’ve never seen so many people leave for AB, ON before. Most have been renters but I think locals are giving up on Vancouver.”

“I travel to Hong Kong a fair bit and whenever there is a corruption case in the news I almost reflexively look for a Vancouver real estate angle.”

Impossible to know how much these buyers have contributed to the bubble. All the stories confirm is that at least a few RE sales over the years have been related to ill gotten gains. -vreaa

chip at vancouvercondo.info 13 May 2010 11:41 pm – “I travel to Hong Kong a fair bit and whenever there is a corruption case in the news I almost reflexively look for a Vancouver real estate angle. These are some I remember from the last few years:

1) Corrupt cop: “A covert police study obtained by The Asian Pacific Post shows that Hon and his family had bought at least 11 residential and commercial properties and established a dozen companies in Vancouver, including a restaurant on Robson Street.” [6 Feb 2008]

2) Corrupt banker: “Gao Shan has been alleged by China for embezzling $150m from a Bank of China’s small branch in Heilongjiang, where he was the branch manager. Apart from Gao, China believes his accomplice Li Dongzhe (李東哲) also lives in Vancouver. A national arrest warrant was issued against Gao in 2005. However, there was no “Red Notice” issued by the Interpol against Gao.” [11 Apr 2007]

3) More corrupt bankers: “Two Chinese nationals with connections to B.C. are on trial in Nevada this week, accused of bilking the Bank of China of $400 million and blowing it on everything from lavish Las Vegas gambling trips to houses in Richmond. … But U.S. prosecutors allege the trio also stashed some of their ill-gotten gains in Metro Vancouver real estate, specifically three $1-million homes on Udy Road and Mang Road in Richmond.”

Liar Loans In Vancouver – “Two people close to me are self employed, and ended up with mortgages more than 10 times their actual income. Stated was 3 times actual. Both were CMHC backed.”

junius at greaterfool.ca 10 May 2010 9:00 am – [commenting on reports of mortgage fraud in Vancouver] “Even if they were not outright fraud, there were a number of tricks being used to push incomes up and increase access to debt. I saw this clearly with 2 people close to me are self employed who ended up with mortgages more than 10x their actual income (stated was 3 times actual). Both were CMHC backed as well.”

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bubbly at VREAA 10 May 2010 9:25 am – “In 2006, a friend talked to a broker at a downtown bank about a loan. Without any hesitation, the broker offered him to “increase” his income by about 50% so that he would qualify. “Nobody will ask”, he said.”

“A real estate agent has told me that, thanks to unscrupulous mortgage brokers, falsifying documents in mortgage applications has become rampant in Vancouver.”

If this has indeed been happening, it’d be yet another mechanism by which higher prices begat higher prices, and another reason that, once this lumbering beast of a market turns, it could fall harder than any of us expect. -vreaa

From an article by Steffan Ileman, examiner.com 8 May 2010 5:31 pm –

“A real estate agent that wishes to remain anonymous has told me that, thanks to unscrupulous mortgage brokers, falsifying documents in mortgage applications has become rampant in Vancouver. The agent says this is how some local and foreign buyers that want to get in on Vancouver’s real estate boom extend their buying power. The same assets, for instance, could be recycled and used by a number of different parties to support  mortgage applications, and it’s especially easy to forge documentation from foreign sources. With HST and rising interest rates it will be more expensive than ever to own or maintain property in British Columbia, and the question is if low income home owners can trigger a bust in BC’s mortgage bubble.”