A group of real estate professionals have been hit with more than $300,000 in fines stemming from a fraudulent property sale in Richmond in 2019.
According to the B.C. Financial Services Authority (BCFSA), two alleged con artists tricked the realtor, managing broker, and brokerage Pacific Evergreen Realty into selling a home valued at $1.7 million.
The alleged fraudsters employed a counterfeit ID, posing as the homeowner residing in China, to obtain power of attorney for selling the house. They utilized the documentation to engage the realtor in selling the property, successfully deceiving both a notary and a lawyer in the process.
While BCFSA found the real estate professionals were not complicit in the fraud, they failed to take reasonable measures at crucial points in the transaction.
“Licensees must uphold their professional obligations, even if they are under pressure from their clients,” said Jonathan Randall, vice president of compliance and enforcement with the BCFSA. “Those who neglect their professional responsibilities will face discipline, especially where there is consumer harm.”
The BCFSA said the licensees neglected to verify identification documents thoroughly, delayed the provision of trading services until an executed power of attorney was received, and overlooked the rushed nature of the property sale.
PENALTIES
- Tracy Xiaomei Li and Tracy Li Personal Real Estate Corporation: $100,000 discipline penalty, $7,000 enforcement expenses, and enhanced managing broker supervision for six months.
- David Chian Wei Yang and David C.W. Yang Personal Real Estate Corporation: $50,000 discipline penalty, $5,000 enforcement expenses, and enhanced managing broker supervision for one year.
- Lok Chi Annie Fong and Annie Fong Personal Real Estate Corporation: $50,000 discipline penalty, $5,000 enforcement expenses, with a prohibition from being a managing broker for six months.
- Lo-Ming Lee: $50,000 discipline penalty, $5,000 enforcement expenses, and a prohibition from being the sole managing broker for one year.
- Pacific Evergreen Realty Ltd.: $25,000 discipline penalty, $5,000 enforcement expenses, with the requirement to submit a compliance plan on handling suspicious transactions.
“The penalties reflect the severity of the licensees’ failure to meet their core responsibilities, including know-your-client obligations and duties to act honestly and with reasonable care and skill,” Randall added.
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