A B.C. man who admitted obtaining a mortgage on a $2 million home using documents faking his income and savings has agreed to hand over his Realtor’s licence.
In a B.C. Financial Services Authority (BCFSA) undertaking signed in September, former ReMax City Realtor Jin Luo agreed he committed professional misconduct when he faked the documents.
He also admitted to “unbecoming” conduct for hiring an unregistered mortgage broker to support mortgage applications on two Vancouver homes.
Authorities say they discovered Luo’s conduct while investigating a person Luo knew as “Jay,” who is accused of helping several mortgage brokers and real estate agents use fraudulent documents to mortgage properties.
In addition to having his licences cancelled, Luo has agreed to pay a $5,000 fine.
Jay’s identity and details of the case against him were redacted from the document.
Fraudulent documents
According to the B.C. superintendent of real estate’s consent order, Luo met Jay at an open house. Luo didn’t know Jay’s last name and did not take any steps to verify he was registered as a mortgage broker.
Jay, who had previously been registered as a submortgage broker, had his licence suspended in 2008 for knowingly submitting false information to lenders. He never renewed his registration.
In November 2015, Luo entered into an agreement to purchase a Vancouver home worth about $2.18 million. Luo hired Jay to help with his mortgage application, and sent him financial documents.
The next month, a registered mortgage broker, who was not identified, submitted a mortgage application for the property on behalf of Luo.
The application was supported by a fraudulent TD savings account statement portraying a balance of nearly $900,000 and income tax documents indicating his net income was about $250,000 a year.
Jay created the fake documents, according to the consent order. On Jan. 18, 2016, the mortgage for the property was registered.
A second property
Meanwhile, Luo used Jay’s services to refinance a second Vancouver property and provided him with documents to support his mortgage application.
On Nov. 27, 2015, a second unidentified registered mortgage broker submitted another mortgage application on behalf of Luo, seeking mortgage refinancing for the second property.
The second mortgage application included a false savings account statement portraying a balance of about $98,000 and income tax documents indicating Luo’s annual income was about $210,000.
Once again, Jay created the fake documents, according to the consent order. In 2016, the mortgage was registered against Luo’s second property.
In all, Luo paid Jay about $25,000 for his services.
An anonymous tip
In 2017, the BCFSA, then called the Financial Institutions Commission of B.C. (FICOM), received an anonymous tip that Jay had been working with mortgage brokers and real estate agents using fake documents to get mortgage funding for buyers.
On Jan. 30, 2019, the acting registrar of mortgages signed two orders to enter Jay’s home. Investigators found an Excel spreadsheet titled “Work Flows 2018” that identified Luo as a client and his two properties.
That May, the acting registrar issued a cease and desist order, restraining Jay from conducting business as a registered or unregistered mortgage broker in B.C.
The BCFSA told Luo it was investigating him on Dec. 28, 2021.
In a deal accepted by the B.C. superintendent of real estate in October, Luo has agreed to the cancellation of his licence and the licence of his personal real estate corporation.