EDITOR’S NOTE: An earlier version of this story reflected charges against a Fort McMurray resident but all those charges were later stayed (withdrawn). As such, we have removed the name of that person from this story.
A Fort McMurray man was arrested in relation to a complex mortgage fraud scheme. Police say a Calgary-based organized crime group managed to buy more than 20 homes in Fort McMurray, Calgary and B.C.
Former Fort McMurray resident Ricco King,42, was arrested on Dec.10, along with his accomplices Jared Jenkins, and Santino DiMarzo. All are residents of Calgary.
King faces the following charges:
- Obstruct justice;
- Administer noxious substance (x 2);
- Identify theft;
- Personation;
- Money laundering;
- Conspiracy to obstruct justice;
- Conspiracy to commit fraud;
- Instructing a criminal organization.
In total 21 charges are being laid on the three individuals.
“Last year we received a tip from the public, in regards to the activities of our suspects and that led us to our 14 month investigation which led us to the arrest of the four accused persons on December 10th,” said Alberta Law Enforcement Response Teams (ALERT) Staff Sargeant Martin Schiavetta.
Investigators say the group created the fictitious companies, Apex Medical Services Ltd., Petro-Alta Resources Corp., Harmony Skin Clinic Ltd. and Nucity Homes Inc and used those as a fronts for their crimes and to acquire the fraudulent mortgages.
They also allegedly used false documents related to employment records, bank statements, credit information and tax assessments.
The price tags on the homes ranged from $300,000 to more than $1 million. It is estimated that the group defrauded banks of out an estimated $12,000,000 on over 20 homes.
Police believe there are dozens more homes that they have yet to find.
“We can confirm there have been residences that have been obtained fraudulently in Fort McMurray , and that investigation is continuing. We’re working with our other ALERT partners and policing partners in Fort McMurray in that investigation,” says Schiavetta, adding “people in Fort McMurray should only be concerned if they’ve come in contact with those individuals or have seen documentation related to those fraudulent companies.”
Police are expecting a charge of sexual assault to be laid on King in connection to the two current charges of administering a noxious substance (administering a drug to another person) which police say, in this case was used for sexual assault.
ALERT says the suspects directed mortgage brokers, banking staff, realtors and lawyers to facilitate the mortgage fraud. “A number of financial institutions have been affected, not just one, there’s been a number of them and they’re cooperating with the investigation so far,” said Schiavetta.
They’ve found fraudulent mortgages that date back to 2007.
Police say more arrests and charges are coming. They’re warning people who may have done business with the suspects or fake companies to look over their mortgages and credit ratings.
ALERT was established and is funded by the Alberta Government, nearly 400 municipal police, RCMP and sheriffs work in the teams.
