Multiple people arrested for scams targeting Waterloo Region homeowners

Waterloo regional police have made arrests in two separate fraud investigations with losses totalling a combined $1.7 million.

Both schemes targeted homeowners in Waterloo Region and other areas of Ontario.

Police released information about both of them on Thursday.

In the first case, police said the accused told homeowners they were entitled to money through a lawsuit against HVAC companies involving products they’d previously purchased, like air conditioners, furnaces, HEPA filters and water filtration systems.

Homeowners were told they could only receive the money through home renovations. Using high-pressure tactics, the accused allegedly convinced the victims to sign contracts.

Contractors working with the accused would then complete quick and often poor-quality renovations at the victims’ homes, police said.

Then in the days or weeks that followed, the accused would use the information from the contracts to take out liens against the victims’ homes for amounts ranging from $40,000 and $70,000, police said.

Police have arrested a 32-year-old man from Pickering in connection to the scheme. He’s charged with eight counts of fraud exceeding $5,000.

Police say the potential total loss is valued at $1 million.

SCAMMERS IMPERSONATE FINANCIAL ADVISORS

A 33-year-old Hamilton man and a 28-year-old man from Oakville are also facing fraud charges in connection to a separate investigation.

Waterloo regional police said the pair pretended to be in the debt consolidation business, specializing in helping people pay off liens against their homes.

They allegedly used high-pressure tactics to convince victims to take out multiple mortgages, leveraging their home’s equity. The money was used to pay off the liens, with all additional money redirected to companies owned by the scammers. The men also paid themselves consulting fees, lending fees and charged the victims for overpriced renovations.

Police said several victims have been identified across the province, including three in Waterloo Region, one in Oakville and one in Welland. The total loss to the victims is estimated at $700,000.

Asked if investigators believed the two cases may be connected, police said they are separate.

EXPERTS WEIGH IN

Garth Sheriff, CPA and the founder of professional development providing company Sheriff Consulting, said intricate scams like these are becoming more common.

“Scammers now are thinking of more and more ways to really break down the trust of somebody,” he explained.

“Going door to door, physically meeting someone, is an opportunity for them to really break down somebody’s skepticism.”

He said it’s typically older people who are targeted, but anyone can fall for scams that seem realistic.

When it comes to aggressive tactics used in scams, Sheriff said to know your limits. Sometimes that means not opening the door at all, or limiting yourself to a 60 second conversation.

“If they want to talk and you have a difficult time trying to stop them, fine, let them have their piece. But do your best not to put pen to paper,” he explained.

If someone does fall victim to scam, Sheriff said they shouldn’t be ashamed.

“It’s not only the financial impact, it’s also the shame and the feeling of ‘I should have done better,’” Sheriff said.

“I would just say that one of the better things to do is to let the Anti Fraud Commission know about it, let the police know about it and try to get the word out. We should try to take the shame out of it because any one of us can be victim to this type of fraud. The more we learn about it, the more we can better protect ourselves.”

Donald Travers, a managing partner at Travers Real Estate Law, said the most important thing for people to keep in mind is to never sign anything on the spot.

“When somebody’s pushing you and that, just back off, take the paper [and say] ‘I’ll get back to you in the next couple of days.’ Do your research,” Travers said.

“It’s easier said than done, particularly when you think you’re getting some benefit and they’re pushing.”

He said check in with a friend, lawyer, bank or financial advisor about any contracts for the home.

TIPS FOR OWNERS

Police are offering this advice to homeowners to avoid scams:

• Use only reputable mortgage brokers and companies
• If you are unsure what you are signing, ask a trusted person or lawyer to help you understand the documents
• Be very cautious about any door-to-door solicitation, particularly if they ask you to sign contracts
• If you feel you may currently be in a contract, a title search be done so that any outstanding and unknown Notice of Security Interests (NOSI), commonly known as liens, can be addressed.