Easy money times are fertile soil for fraud

More evidence that Canadian real estate and Canadian banks have not escaped scandal amid the excessive lending and lax standards of the past few years. CBC reports a fraud suit just filed by BMO on a large fraud ring that bilked the bank out of millions of mortgage dollars over the past few years. Other Canadian banks have also suffered losses from fraudulent transactions. Stay tuned. More losses and law suits to follow, and especially as Canadian real estate prices trend lower in the months ahead.
See: The National clip : a huge fraud ring
and Bank of Montreal alleges huge mortgage fraud. (Hat tip: Paul G.)

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