A Toronto Homeowner Died. Then a Stranger Tried to Drain Her Home of its Equity

A ruling of the Ontario Superior Court in October serves as a warning to those who would commit mortgage fraud that they will be treated harshly by the justice system.

In 2018, when she was 83, she moved into a long-term-care home. She was diagnosed with dementia and other ailments and later died.

In 2020, Renford Barran learned about the owner’s situation, possibly from the property’s tenants. He arranged a reverse mortgage with Home Equity Mortgage Corporation.

A reverse mortgage allows a property owner to borrow money against the equity in a home and remain in the home for life without making any payments until the property is sold or the owner dies.

Barran and an unknown female accomplice impersonating Taraschuk attended a law office on Toryork Drive in Toronto to receive legal advice and sign mortgage documents. Barran pretended to be the owner’s son.

The lawyer was retained to confirm the identity of the borrower and advise on the terms of the loan. Clearly, there was a failure in the identification process.

The mortgage on the home was registered in the amount of $903,676. There was to be an initial advance of $552,145 and a subsequent draw of $234,354, according to the registered mortgage.

In August 2020, a cheque for $540,455 net of fees and interest was made payable to Olga Taraschuk and deposited in person at a TD branch on Weston Road.

After the cheque cleared, Barran withdrew the money in various forms.

The following month, a further $234,000 was electronically deposited into Barran’s account and subsequently disbursed.

Sandra Shah is Olga Taraschuk’s cousin and was her power of attorney. Shortly after the funds were paid out, she received a letter about the new mortgage. Since Shah believed there was no mortgage on the house, she informed the title insurer and the police were contacted.

It turned out that in 2020, Toronto police were conducting a major wiretap investigation into organized crime, and Barran’s communications were intercepted by the police. The intercepts referred to the attendance at the law office, the deposits at the TD Bank and the release of the mortgage cheque.

Ultimately, TD Bank suffered a loss of $783,455.

Barran was charged with mortgage fraud and pleaded guilty. He admitted that he was offered a substantial sum of money by third parties to “assist” in the refinancing.

Judge Robert Goldstein had little sympathy for Barran. He wrote: “The fact that the target of this fraud was an elderly, helpless victim suffering from dementia in long-term care is highly aggravating. Ms. Taraschuk was specifically targeted because she was unable to defend herself.”

In sentencing Barran to three years in penitentiary and ordering restitution of $583,455, Goldstein wrote, “Elderly people often rely on the equity in their homes to see them through their final years. Those who would defraud such vulnerable people should know that they will pay a steep price. The court must strongly denounce such behaviour.”

The female impostor and the organized criminals who arranged the fraud are still at large.