Bangladeshi cheats $20 million in Toronto
Fri, Sep 16th, 2011 2:33 am BdST Dial 2000 from your GP mobile for latest news
Toronto, Sept 16 (bdnews24.com)—Manzoor Moorshed Khan, president of Channel Property Management and a Bangladeshi is alleged to have scammed more than 1,000 condominium owners across Toronto in a property fraud that could run beyond $20 million.
He fled to Bangladesh a few weeks back.
His method was to borrow money from the banks against the condo owners name without their knowledge, according to documents obtained by Canada's leading newspaper the Toronto Star which ran the news on Thursday as its main banner headline.
Industry experts said they have never seen anything like this before.
"This is totally unprecedented," said Dean McCabe, president of the Association of Condominium Managers of Ontario. "Everyone (in CZ) is in a tizzy."
"The Star has learned that at least four condominium corporations managed by Khan's company were victims in the alleged fraud. Of these, one has filed a lawsuit for $3.1 million against Khan, his company and several financial firms. "
The lawsuit alleges that Khan registered a fake bylaw without the board's knowledge that authorised him to borrow more than $3 million against the property, His corporate client are planning more suits.
According to allegations filed in court, Khan arranged a loan in the condo's name and had two of his employees pose as board directors to obtain the loan. Without the board's knowledge, he opened a bank account in the condo's name and $3.1 million was deposited into the account in January.
Mohammad Irfan Naeem, 38, is one of two Channel employees named in the lawsuit says his signatures were forged on loan documents. "My life is a mess now."
Naeem joined Channel about four years ago and life was fine. But in mid-August his supervisor Michaela Jurkovic called to say that lawyers had faxed her documents showing a loan of more than $3 million against the property. "Our names — hers and mine — were also there. I was speechless."
Manzoor Moorshed Khan was working as a superintendent at an apartment rental building in Toronto when he decided to create his own property management firm in 2003.
During an interview with the Star in August, Khan boasted that he managed more than 40 condos — positioning himself as a mid-level company. His employees, though, say the actual number was less than 15 at any one time.
So who is Khan?
He has been described as a man who was good to his employees and had far flung business interests including in the Middle East. He loved expensive cars. "He changed cars like shoes… there was a new one every few months," said a former employee.
At his two-storey home in Brampton a Mercedes, Lexus, Audi, BMW were found on the property. Four video cameras monitor the premises but nobody answered the doorbell when reporters from the Toronto Star visited.
Khan's 25-year-old daughter Sharmin Sadia is now managing the show. She refused to be interviewed. The staff has been told to go and the company has been told to vacate the premises for not paying rent.