Wednesday , April 14 2021

Half-billion-dollar broker unregistered “shadow” broker BC says it has met demand

A so-called “shadow” mortgage broker responsible for securing more than half a billion dollars in home financing through the use of altered tax and banking documents says there will always be a demand for the services of people with skills.

Jay Kant Wajari, who ordered the authorities to stop and stop his unregistered activities in 2019, testified Wednesday in a public inquiry into money laundering in British Columbia.

It is estimated to have earned $ 6 million in fees related to 900 deals submitted by registered mortgage brokers a decade before regulators raided its offices in 2018.

Speaking before investigator Austin Cullen, the Judge judged his role as “moral”, helping people who had the means to pay a mortgage – if not the documents to prove it – to avoid the dangerous world of private lenders.

He claimed that none of his clients had ever gone bankrupt, that none of the banks that gave them money had ever been injured, and that a thriving BC real estate market meant he was always busy.

“How could I have been prevented?” he asked, answering a question from the committee adviser.

“In fact, I do not think it can be avoided. Because there will always be a need for people like us and what we did, and because the demand itself is there. The demand comes from the borrowers themselves. The demand comes from people who want a home. and do not conform to traditional guidelines. “

“It is not difficult”

During the hearing, the Judge’s attorney confirmed that his client, who was called to appear before the panel, is under investigation by the Canada Revenue Agency.

The acting secretary of mortgage brokers has issued a restraining order against Jay Kant Wajjari, who is pictured as acting as a “shadow broker” in questionable files worth more than half a billion dollars. (Photo by Belluxe)

Chaudhary worked as an accountant and was also licensed as a real estate agent before registering as a mortgage broker in January 2007.

His registration was suspended in October 2008 after a colleague stated that he had organized funding using modified documents. The Judge never applied for redress.

He told the commission’s lawyer, Eileen Patel, that word of mouth had grown as he was a registered broker that he could arrange mortgages for people who did not normally qualify.

He said he received referrals from real estate agents and developers, and paid real estate agents a quarter of the commission, about one percent of which the banks would pay.

Kritzari described the changes to the statements using regular document software.

“It’s not difficult. If someone has a basic knowledge of the software, they will be able to change it,” he said.

“I told him the danger”

Following the cancellation of the mortgage broker’s license after his suspension in 2008, Judge said he returned to accounting for about six months, but found himself struggling.

“Then the calls started coming in to see if I could help people get mortgages,” he said.

“So I decided to get back into this business, but this time just by using the help of other mortgage brokers to send my applications.”

Commissioner Eileen Patel asked Jay Kanth Chaudhary in a public inquiry into money laundering by Commissioner Austin Cullen. (Cullen Commission)

Over the next 10 years, Nawazary said he used the services of four registered mortgage brokers to bid on a network of about 20 real estate agents referred to him by clients.

“The first mortgage broker I approached, I made my plan, I had a lot of clients and I would like to make mortgages for my clients and I made a plan that I would like to do if he was interested,” Judge said.

“She said she wanted to do it with me. I told him the danger involved and he was still willing to continue. “

Money for all involved

Krindari said it was a good deal for the brokers because he would handle all the paperwork and only need to submit the complete application.

He said he took 25% of the commission the brokers received from the bank and paid him in cash. It also charges its customers one percent of the mortgage amount.

Jay Kanth Chaudhary has admitted that he changed documents to help customers get mortgages from banks. He said it was not difficult for someone who knew how to use the software. (CBC)

Krindari said he gave real estate agents 25% of his commission from customers.

He said he believed the people he worked with knew what he was doing. And he even organized personal mortgages for a number of realtors.

The mortgage brokers he worked with have been suspended, but Chaudhary said many of the real estate agents channeling his clients are still working.

He told Patel that he used two nicknames to handle deals because he was worried about competitors.

“It never passed me by”

Using the example of a self-employed plumber, Krindari said that many people make more money than their tax records show.

Patel read from a document related to one of his previous records, which reported a criminal investigation into a real estate agent accused of using a “straw buyer” to buy homes, and an employment report for what appeared to be a fake record company.

Choury ary insisted that he never considered his clients’ source of income to be an illegal activity.

“It never happened to me,” he said.

The wife of Choury Ary, a former real estate agent who now runs a catering company, was barred for life last October from applying as a mortgage broker or mortgage broker for her role in facilitating her husband’s business.

Judge was not surprised that he was able to operate for as long as he had.

“It looked like the system the way I did it, for the most part it worked well. Everyone was a winner and I also made a small charge,” he said.

“So I guess there were no complaints. When everyone wins and no one gets injured, there was no reason for anyone to complain against me.”

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