A 42-year-old man is facing charges in a mortgage fraud scam targeting short-term rental operators in Toronto, and police believe he is a member of a large-scale criminal enterprise.
Jay Allen MacDougall allegedly stole the identities of short-term rental homeowners, took out mortgages under false pretenses and collected the proceeds, according to a Toronto police news release.
MacDougall was charged on May 25 with five counts of fraud over $5,000 and laundering the proceeds of a crime.
Police alleged MacDougall used a fake name to rent property on a short-term rental platform then stole the identity information of the homeowner during his stay. Police said he then used the information to pose as the homeowner, obtain a mortgage and make off with the money.
Police believe he may have committed similar crimes and is urging those with information to come forward.
Det.Dave Coffey of the Toronto Police Financial Crimes Unit said other people are likely involved and that Macdougall was not operating alone, in what investigators have described as a “very sophisticated” scam employed by at least half a dozen rings operating in the GTA, according to CBC News.
It is allegedly the most recent wave of fraudulent mortgage and identity scams affecting innocent homeowners in the GTA, costing insurance agencies millions in claims
An investigation by CBC News found that “cases of real estate fraud where homes are being put on the market without the owners’ knowledge are more widespread than authorities initially indicated, and that organized crime groups are behind many of them.”
MacDougall is associated with a group of scammers who regularly employ Airbnb to carry out scams, police said
Short-term rental platforms like Airbnb provide faster routes for seasoned fraudsters to gain physical access to targeted properties. While inside, scammers will search for information such as credit card statements, bills and government issued ID that can be used to generate fake copies, police said.
Airbnb told Now Toronto that protecting the community against scams is a priority.
“This kind of activity has no place on Airbnb, and we are currently investigating this report,” an Airbnb spokesperson said in an email statement.
Airbnb said it has not been contacted by Toronto police regarding the matter.
MacDougall appeared in a Toronto court earlier this month.
Anyone with information is being asked to contact police at 416-808-7310, or Crime Stoppers anonymously at 416-222-TIPS (8477) or at www.222tips.com.
