Metro News—Toronto Condo Fraud
Jessica Smith
Metro Toronto's investigative and special features reporter.
12 September 2013

Jessica Smith wrote a short five-part series on the hidden corruption in Toronto's condominium industry. It is well worth reading.

Embezzlement, kickbacks and bid rigging
How contractors inflate their fees
“He talked a good game and gained everybody’s trust”
The mechanism of bidding fraud and kickbacks
What the law says

As you read this chapter on condo corruption, you will see that corruption is not a victim-less crime. Many owners have lost their investments and their homes when expensive repairs were required and the money that was to be set aside to pay for them was stolen or misused and they were hit with huge special assessments or loan payments.

The condominium industry is not capable of preventing corruption.

We do not hear of property managers, condo auditors or corporation lawyers blowing the whistle on corruption. In fact, in most cases, it is an individual owner, or a newly elected director, who discovers that fraud has taken place.

How common is fraud and corruption?
Who knows but here is a fascinating comment from David Fleming, the host of the Toronto Reality to a reader who said that he would never by a condo and he referred to the above mentioned news reports.

"Jason H – I understand your point. But not ALL condos are managed by embezzlers, and if you want to live downtown, you have to 'risk' it."
—David Fleming

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