A year ago, Janet Campbell faced a bleak financial situation after falling victim to an alleged real estate scam, losing almost $30,000. She had to spend the remainder of her savings on temporary housing due to the failed home purchase. However, there has been a positive turn of events for Campbell and others affected. The grandmother from Brampton, Ont., is among several individuals who have received partial reimbursements from Tarion, the entity overseeing Ontario’s new home warranty program. Campbell received $15,000, which helped her settle accumulated bills.
Campbell expressed gratitude for the reimbursement, as she had initially feared losing everything. Her lawyer, Andrew Ballantyne, described Tarion’s decisions as significant and potentially setting a precedent for other victims of the fraud scheme. Tarion, a non-profit organization established by the provincial government, ensures warranty coverage for all new homes in Ontario.
The fraudulent scheme, which targeted members of Toronto’s Black community, first came to light four years ago. Moiz Kunwar, the alleged perpetrator, misled buyers by accepting deposits for pre-construction homes he was not authorized to sell. Many individuals lost their life savings in the process.
Kunwar is currently facing multiple fraud charges and civil lawsuits related to the scam. Despite denying all allegations of fraud, he is entangled in legal proceedings. Campbell and six other complainants, represented by Ballantyne, are involved in a civil lawsuit against Kunwar.
Following media coverage, Ballantyne received numerous inquiries from additional victims of the scheme. Tarion’s chief operating officer hinted at the possibility of reimbursement claims, leading Ballantyne to submit claims for 12 clients totaling over $500,000. To date, seven claims, including Campbell’s, have been approved, amounting to over $300,000 in reimbursements.
Tarion’s deposit protection under the new home warranty program covers buyers in cases of builder bankruptcy or breach of purchase agreements. The organization approved Campbell’s claim, stating that she met the criteria for deposit protection, despite the developer, Paradise Development Homes Limited, lacking legal authorization to build in Ontario.
Tarion declined requests for interviews but emphasized the importance of buyers dealing with licensed and approved builders. The organization introduced measures to detect illegal activities earlier, requiring buyers to register purchases within 45 days to qualify for coverage.
Ballantyne views the approved reimbursements as a beacon of hope for other affected buyers and plans to challenge denied claims at the Licence Appeal Tribunal. Many victims faced payment irregularities, hindering their eligibility for reimbursements. Ballantyne estimates the total lost deposits from the victims he is assisting to be at least $4 million.