Brampton man facing fraud charge, 2 lawsuits as alleged real estate deposit scam collapses

A Brampton antheral has been charged with fraud and is facing 2 lawsuits related to an alleged pre-construction location deposit scam worthy hundreds of thousands of dollars.

Moiz Kunwar, 28, allegedly took existent property deposits from astatine slightest 9 homebuyers successful the Greater Toronto Area (GTA) for pre-construction houses helium didn't person the close to merchantability and which were being built by unrelated, morganatic developers. 

Janet Campbell is 1 of them. The Brampton grandma and six others are collectively suing Kunwar to get backmost astir $170,000 they paid him for deposits connected pre-construction homes they purchased but ne'er received.

"This wounded maine a batch due to the fact that I believed him, and I trusted him to person a home, and it didn't happen," said Campbell.  "He took maine to this tract to spot the home, but it wasn't my home."

After galore delays, Campbell says Kunwar assured her the nearly $1-million five-bedroom Brampton location she'd signed a acquisition statement for successful July 2022 would beryllium acceptable by Jan. 1 of this year, so she told her landlord she'd beryllium moving out. But past her imagination location ne'er materialized.

"When I looked astatine my children, and my grandchildren, and they looked astatine maine and they said, 'Mom, wherever are we going to go? What are we going to do?' What bash I archer them?"

Campbell spent her remaining savings connected Airbnbs for herself and her family. She precocious secured a rental by taking retired loans for archetypal and past month's rent. 

WATCH | Brampton grandma suing to get backmost deposit: 

Peel Regional Police charged Kunwar with fraud implicit $5,000 and possession of spot obtained by transgression for an alleged fraud linked to existent property successful March. The unfortunate who was allegedly defrauded confirmed to CBC that her lawsuit involves deposits she paid Kunwar for 2 pre-construction homes she ne'er received. She is not portion of either lawsuit.

The charges against Kunwar person not yet been tested successful court. 

'Simply a income associate'

Kunwar did not respond to CBC requests for remark for this story, but his lawyer filed a connection of defence successful effect to Campbell's suit connected Friday. 

In the tribunal filing, Kunwar denied each allegations of fraud and that he'd ever represented himself arsenic a existent property investor, broker, developer oregon owe lender. Instead, the grounds says Kunwar was "simply a income associate" who received immoderate payments connected behalf of his superiors and did not deposit them for his ain idiosyncratic use. 

The connection of defence does not explicate who those superiors are, oregon what, if any, institution they're associated with.

But it does accidental that Kunwar believed the transactions were lawful and morganatic and that the clip frames helium provided for the spot developments were based connected accusation helium was fixed by his superiors.

The defence besides says Kunwar arranged for Campbell and 2 of the different plaintiffs to get immoderate of their wealth back. 

Real builder confirmed nary transportation years ago

Three years ago, a CBC Toronto probe raised questions astir these existent property deals aft a section realtor sounded the alarm astir a sales pitch with below-market prices and debased owe rates helium said was circulating successful Toronto's Black community. 

The connection was for pre-construction homes successful developments constructed by Paradise Developments Inc. — a licensed developer gathering homes successful the GTA. The seller selling the deals had a astir identical name, Paradise Development Homes Limited (PDHL). 

Private lender Empire Finance was expected to supply the owe financing for the deals. Kunwar was listed arsenic the president of that expected institution connected a concern card, but Empire Finance is not a registered corp successful Ontario, nor a licensed lender oregon broker.

The builder told CBC it had nary transportation to oregon concern narration with the seller and Empire Finance, and that neither institution had the close to marketplace oregon merchantability Paradise Developments' homes. 

At the time, CBC besides spoke to much than 10 different radical who said they either gave deposits to Kunwar oregon others connected with PDHL oregon Empire Finance, had friends oregon household who made payments, oregon who heard the income transportation successful idiosyncratic but didn't invest.

Some raised concerns astir the validity of the deals, portion others believed they had legitimately purchased a home, since their closing dates were years away.

In its connection then, Paradise Developments Inc. besides said Kunwar had nary authorization oregon ineligible close to merchantability immoderate of the builder's properties. 

Kunwar told CBC successful 2022 that helium passed connected accusation astir the deals to radical helium knew but denied taking deposits. At the time, helium said helium had enactment down deposits for 2 homes himself.

Deposits inactive taken successful 2024

Despite having nary narration with the existent builder, it appears Kunwar continued to instrumentality deposits for pre-construction homes arsenic precocious arsenic past year. Three of the homebuyers successful Campbell's suit signed their agreements successful 2024.

"More than 2 years aft the fact, this is inactive happening," said Andrew Ballantyne, the lawyer representing Campbell and six different homebuyers successful the lawsuit.

"One of the clients who I present have signed their acquisition statement successful May of past year. So this isn't thing that stopped."

In an affidavit filed successful the different suit against Kunwar, the plaintiff says helium organized a gathering with Kunwar aft CBC published the communicative successful which Kunwar maintained helium had the authorization to merchantability homes and that "Paradise Homes had to archer CBC determination was nary statement due to the fact that it was confidential." 

Kunwar was "extremely persuasive and convincing astatine this meeting," and the plaintiff near the gathering trusting that Kunwar was an authorized seller and that his agreements of acquisition were legitimate, according to the tribunal filing. The plaintiff's connection of assertion to retrieve astir $100,000 successful deposits helium paid for 2 properties was filed astir 2 years later, successful August 2024. 

Norman Groot is representing that homebuyer. The fraud betterment lawyer is trying to get a default judgement against Kunwar, who did not respond to the assertion until helium attended a virtual tribunal quality past period asking for much time.

"We person seen this script galore times," Groot said. 

"Most frauds are a saltation of the aforesaid benignant of play. Obtaining trust, consciousness of urgency, a small spot of greed connected behalf of the victim, deficiency of owed diligence and a combination of factors results successful idiosyncratic making a determination they privation they ne'er had."

Campbell hopes by speaking retired she tin assistance others debar trusting offers similar the 1 she got, which might beryllium excessively bully to beryllium true. 

"It's a hard acquisition to learn," she said. "I bash privation a home, but I'm scared, due to the fact that present I don't cognize if it's going to beryllium the aforesaid happening again. How bash I judge idiosyncratic oregon spot idiosyncratic now?"