Condo Owners And Managers Need To Be On Guard Against Fraud

The victims of a Toronto property management company executive who borrowed millions of dollars against several condominium corporations then fled to his native Bangladesh are struggling with the aftermath of his fraud. Manzoor Moorshed Khan, president of Channel Property Management, is said to have embezzled up to $20 million, leaving the condo owners to pay off the phoney loans through special assessments and increased condo fees.  Khan’s modus operandi in one case in which he is accused was allegedly to register a bogus borrowing by-law on title. That done, he was able to borrow three million dollars against the property. At another condo corporation he submitted a fraudulent bid for major repair work on the condominium. Then he (allegedly) awarded the work to a company he controlled, which had low-balled the bid. Once the work started, the contract price escalated, while the work was done by a subcontractor for half of the bid price.     Read the article……………..

Related Articles

Quiz: Could You Be One of the Top Property Managers in Toronto? Answer These Questions and Find Out

Property management is a growing industry in Canada. From 2011 to 2012 alone, the last years for which data is

Common expense collections policy redux

We published a piece last May recommending that condominium corporations enact policies to collect common expenses in an orderly, systematic

Draft Reg#2 – Part 4

The draft regulations also address another issue that causes a lot of disputes in condominiums – record requests. It also