We learned yesterday of an incredible case of alleged condo fraud in Toronto with more than 1,000 condo owners possibly on the hook for millions of dollars.
Manzoor Khan, president of Channel Property Management, allegedly borrowed millions of dollars against at least seven buildings without owners’ knowledge. An estimate pegs the total misappropriation at $20 million or more. Holy smokes!
The financial institution that lent the money to Khan has said it’s also a victim.
Apparently this case is totally unprecedented in Toronto.
“Everyone (in the industry) is in a tizzy,” Dean McCabe, president of the Association of Condominium Managers of Ontario, told the Toronto Star yesterday.
More details emerged today as the Star continued to cover the story. Khan’s company has filed for bankruptcy and has been evicted from its Woodbridge office for not paying rent. According to reports, Khan is believed to have left Canada for Bangladesh.
All the details in this complex case of possible condo fraud can be found in this Star article, but what we’re most interested in is how this case will effect the consumer protection issue for condo owners. We’ll be following this one as it unfolds!