If you practise real estate law, you need to be aware of Tarsem Singh Gill, the individual accused of being the directing mind in BC’s largest real estate fraud scheme, and his spouse Surinder Kaur Gill. The fraud involved Vancouver lawyer Martin Wirick who acted with Tarsem Gill in a series of mortgage frauds that resulted in Wirick’s disbarment and incarceration. It also led to the Law Society of BC paying out more than $38 million in losses to innocent property purchasers and their lenders. Tarsem Gill is still being prosecuted for the fraud – see the recent Vancouver Sun article: 16 years after real estate fraud charges laid, Vancouver developer never stood trial. He also never stopped business.
Here is what allegedly happened just last month:
A numbered company (“Numco Ltd.”) is the registered owner of property in BC. It appears that someone gained access to Numco Ltd.’s online corporate registry portal using its online company password, and filed a notice of change of directors appointing Surinder Kaur Gill as the sole director of Numco Ltd. Surinder, as sole director, then obtained a substantial mortgage on the property and received the mortgage proceeds. Subsequently, Numco Ltd. discovered its property was encumbered with a significant mortgage, which it disputes.
In addition to allegedly encumbering the property with a fraudulent mortgage, steps were allegedly taken shortly after to attempt to sell the property to a third party. While the sale was averted this time, the scheme may be tried again.
What can you do?
Real estate frauds are often highly sophisticated and virtually undetectable until after the harm has been done; but you do not want to find yourself facilitating – even unwittingly – a fraud and potentially jeopardizing your career. The following tips will help you protect yourself:
- Be aware of the alleged actions that Tarsem Singh Gill and Surinder Kaur Gill are accused of. Share this notice with your colleagues.
- Read this case: 1264777 B.C. Ltd. v Gill, 2023, BCSC 131, which describes a similar pattern as the recent transaction above. The evidence of the Mortgagor company was that the:
…Mortgage was obtained by fraud, engineered by Tarsem Singh Gill (“Tarsem”) and his spouse Surinder Kaur Gill (“Surinder”)….
It appears that at some point between September 21, 2020 and October 16, 2020, Tarsem or Surinder unlawfully accessed the Mortgagor’s online portal to make changes to the corporate registry. Tarsem or Surinder proceeded to file a notice of change of directors so that the corporate registry listed Surinder as the sole director of the Mortgagor.
Subsequently, apparently without [the former director’s] knowledge or consent, Surinder fraudulently presented herself… as an authorized signatory of the Mortgagor. She caused the Mortgagor to enter into the two mortgages and an assignment of rents against title to the Property.
- Should you become aware of a transaction where some of the details seem suspicious, call a practice advisor at 604.443.5797 or email practiceadvice@lsbc.org.
- Educate everyone at your firm to be watchful for signs of real estate frauds.
- Do not share your passwords or allow others to use your access for electronic document registrations.
- Take note of these interesting facts from our fraud files:
- A numbered company is the registered owner of property in BC.
- Identity of the beneficial owner is concealed with the use of a potential ‘straw’ or nominee purchaser.
- Private lender is involved.
- Private lender does not require title insurance despite a significant loan, or title insurance has been declined.
- Transaction must be completed in a rush.
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- Lender fee is high considering the amount of the loan.
- Multiple or recent changes have been made to the directors of the company.
- The real estate deal and the client’s instructions make little commercial sense.
- Other similar or related transactions have been made involving the same property.
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While most private loans are legitimate, there is an increased risk of illegal activity with them.
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