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City MP named in fraud lawsuit

A backbench MP for Prime Minister Stephen Harper’s federal Conservatives is among those named in a lawsuit alleging a $70-million mortgage scam at the Bank of Montreal.

A backbench MP for Prime Minister Stephen Harper’s federal Conservatives is among those named in a lawsuit alleging a $70-million mortgage scam at the Bank of Montreal.

Devinder Shory, MP for Calgary Northeast, is one of more than 100 people — including lawyers, mortgage brokers and staff at the bank itself — targeted in the suit, filed in Calgary by the bank.

Shory, 51, said in a statement late yesterday that he’s “done nothing wrong.”

The bank says it has been scammed in several schemes in Western Canada that were first flagged in a security check four years ago. It alleges the defendants found undervalued houses in upscale neighbourhoods, then paid someone a few thousand dollars to put his or her name on a mortgage application.

Documents were then forged to inflate the value of the property and fool the bank into believing the buyer had the ability to pay. Once the mortgage was approved, the fraudsters pocketed the profit and the money was sent overseas, the bank alleges.

It says the mortgages were worth $69.5 million.

The allegations have yet to be proven in court. There have been no charges laid.

 
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