Two men are facing serious allegations involving a fraudulent cash house buying scheme that allegedly deceived a Laval couple in 2016. Mark Blumenthal and Constantin Niphakis stand accused of stealing the couple’s home under false pretenses, as revealed in a recent criminal trial in Montreal.
Circumstances Leading to the Fraud
In December 2015, the Laval couple found themselves in significant debt. Unable to secure a loan from their bank, they looked for alternative options. This led them to respond to an advertisement reading, “I Buy Houses CA$H,” where they expressed interest in obtaining a loan of $100,000.
Agreement Misunderstanding
- The couple intended to use the funds to pay off their debts totaling $55,000.
- They provided a list of their debts, expecting direct payments to creditors.
- However, they only received $30,000 and unintentionally signed away ownership of their home.
Deceptive Practices Revealed
During the process, Blumenthal, who identified himself as an attorney, had the couple sign a document without providing any explanation or a copy. According to the prosecution, the defendants presented a sales contract instead of a loan agreement.
The couple’s home, a valued property worth over $300,000, was transferred to the defendants for a fraction of its value—just 10% of the total price.
Consequences of the Fraud
- After the supposed sale, the victims began receiving calls and letters from creditors.
- They had not received the promised funds to pay off their debts.
- The property subsequently changed hands yet again, this time to another party.
The Lavalloise, now in distress, recounted, “I didn’t know I had sold my home. We had to hire a lawyer and fight to stay.”
Civil and Criminal Proceedings
In 2019, a civil court nullified the original sale agreement and ordered Niphakis to pay approximately $235,000 to the victims. However, a subsequent sale by another company was upheld by the court, citing good faith in the transaction.
After years of legal battles, the couple was ultimately forced to relocate. The criminal trial, overseen by Judge Lucie Joncas, continues, with Niphakis scheduled for another trial in January concerning additional victims involved in this cash house buying scheme.
