Certified Forensic Loan Auditors, LLC

  Upcoming Classes

Search CFLA's Article Archive:

RCMP Investigating Ex-senator Mac Harb for Mortgage Fraud

theglobeandmail.com | January 12, 2014

By Josh Wingrove

The RCMP officer investigating the Senate expense scandal alleges former senator Mac Harb committed mortgage fraud related to the properties he claimed as his primary residence.

In a court document released Friday, RCMP Corporal Greg Horton alleged Mr. Harb held two mortgages against a home outside Ottawa that he owned just 0.01 per cent of – a home he had claimed as his primary residence, while billing the Senate expenses for a “secondary” residence in the city.

The RCMP say the remaining 99.99 per cent stake in the Cobden, Ont., home was sold by Mr. Harb to Magdalene Teo, a diplomat from Brunei stationed in Canada, hours after the first mortgage was secured. Ms. Teo told investigators she has a “personal friendship” with Mr. Harb, while Cpl. Horton wrote that the relationship “has not been determined” by the RCMP.

Both Mr. Harb and Ms. Teo have refused to speak with investigators, the RCMP say, prompting investigators to enlist the Department of Foreign Affairs, Trade and Development to seek co-operation from Ms. Teo.

The RCMP document was filed in court to obtain a warrant to obtain bank documents, with Cpl. Horton saying he has “reasonable grounds to believe” that Mr. Harb committed mortgage fraud. A similar document filed previously showed the Mounties believed Mr. Harb “did commit a breach of trust,” a different charge. But no charges have been laid, and the allegations haven’t been proven in court.

According to the latest document, dated Dec. 10, Mr. Harb bought a home in Cobden, outside Ottawa, on Dec. 2, 2003, a few months after being appointed to the Senate as a Liberal. On Oct. 12, 2007, he took out a $177,000 mortgage against the home, and hours later sold 99.99 per cent of the home to Ms. Teo for $567,000, keeping 0.01 per cent. According to the RCMP, RBC was not told Mr. Harb no longer was the sole owner of the home and “viewed these actions as fraud.”

On. Nov. 10, 2010, Mr. Harb bought a home in Westmeath, Ont., and took out a mortgage for $240,000, the RCMP say. He and Ms. Teo still owned the other home, which the RCMP allege was listed as “a solely owned asset” to apply for a mortgage on the new home. The Mounties say RBC viewed that, too, as fraud, though acknowledged “there was no financial loss to RBC” through the transactions. The Cobden home was then sold altogether in 2011.

Mr. Harb represented a downtown Ottawa riding as an MP before being named to the Senate. Senators can claim expenses on a home if they live more than 100 kilometres from Parliament Hill. Cobden is 115 kilometres away, and Westmeath is about 130 kilometres away. Mr. Harb has insisted he followed the Senate rules.

A previously filed RCMP document said the Cobden home, which Mr. Harb was claiming as his primary residence, “was often empty,” with the man who bought the house telling the RCMP he “was of the opinion that no one had lived in the house for a long time prior.” But in one court affidavit, Mr. Harb says he “always considered” Cobden, then Westmeath, as his primary residence.

The Senate demanded he repay living expenses, and he initially pledged to fight it in court. But, on Aug. 26, 2013, he repaid $231,649 and resigned, saying he did not want to be the “poster boy” for an ongoing audit of all senators’ expenses. Earlier that month, he’d sold the Westmeath home.

A request for comment from Mr. Harb’s lawyer wasn’t returned Friday. The RCMP are also investigating senators Patrick Brazeau, Mike Duffy and Pamela Wallin, each appointed as Conservatives but since suspended. No charges have been laid.


Back to January 2014 Archive

CFLA was founded by the Nation's Leading Foreclosure Defense Attorneys back in 2007 to serve the Foreclosure Defense Industry and fight pervasive Bank Fraud. Since opening our virtual doors, CFLA has rapidly expanded to become the premier online legal destination for small businesses and consumers. But as the company continues to grow, we're careful to hold true to our original vision. For us, putting the law within reach of millions of people is more than just a novel idea—it's the founding principle, just ask Andrew P. Lehman, J.D.. With convenient locations in Houston and Los Angeles, you can contact Our National Account Specialist and General Manager / Member Damion W. Emholtz at 888-758-2352 for a free Mortgage Fraud Analysis or to obtain samples of work product, including cutting edge Bloomberg Securitization Audits, Litigation Support, Quiet Title Packages, and for more information about our Nationally Accredited and U.S. Department of Education Approved "Mortgage Securitization Analyst Training Certification" Classes (3 days) 24 hours for approved CLE & MCLE Credit (Now Available Online).

SEE BELOW- http://www.certifiedforensicloanauditors.com

Call us toll free at 888-758-2352

Bookmark and Share
Facebook Like us on Facebook
Twitter Follow us on Twitter
YouTube View our YouTube Videos
LinkedIn Connect to us on Linkedin
BBB Logo


Contact us or view our Sample Documents & Audits by completing the form below.

International Bloomberg Securitization Audits


DVD Sets Only $99


FREE Mortgage Fraud Analysis


Order Cutting-Edge Services Now


Quiet Title Packages from Licensed Attorneys


Affiliate Services


CFLA Sponsored Attorney Links


Take-Home Education Package