Surrey accountant banned for his role in real estate marketing scheme

Supported By:

Net Patrol International Inc.  Data Investigation and Forensic Services
Bankruptcy and Insolvency Trustees

Vancouver (June 8, 2020) – Mutual Fund Dealers Association of Canada (MFDA) banned Surrey accountant, Vasant Pragjibhai Patel, for his part in a high-profile real estate marketing scheme, for which he allegedly obtained $425,000 in commission. A hearing panel of the financial regulator approved the settlement agreement on June 2, in which he admitted to having been engaged in unauthorized sales and investment activity and to have made false or misleading statements to MFDA investigators. As a result, Patel is permanently prohibited to conduct securities related business with mutual fund dealers. Furthermore, he has to pay a $25,000 fine and must pay $5,000 for costs.

The Mutual Fund Dealers Association of Canada (MFDA) permanently banned the Surrey chartered professional accountant, Vasant Pragjibhai Patel, for his role in a high-profile real estate marketing scheme, according to an MFDA press release. An MFDA hearing panel approved the settlement agreement on June 2.

The settlement agreement

A hearing panel of three members of the Pacific Regional Council of the MFDA approved the settlement agreement between the MFDA and Patel on June 2.

According to the agreement, Patel admitted that he engaged in unauthorized sales and investment activity between April 18, 2016, and January 9, 2018, ‘by recommending or making referrals to at least 15 individuals to invest in, or loan money to, a real estate development project’ and ‘by registering a company and serving as the president and a director of the company.’

These outside activities related to the Murrayville House condo development were not disclosed to or approved by his employer WFG Securities Inc. Subsequently, WFG Securities Inc, a member of the MFDA, terminated Patel’s registration.

Furthermore, the agreement reads that he admitted to having made false or misleading statements to MFDA investigators about what he knew about the scheme in October 2018.

The high-profile real estate marketing scheme

The MFDA disclosed that Patel solicited, recommended, facilitated, or made referrals for investments in, or loans to, the Real Estate Development Company of the developer Mark Chandler to at least 15 investors. Between April 2016 and January 2018, these investments for the development or purchase of units in the Langley Property totaled up to $4.3 million. The MFDA asserted that Patel obtained $425,000 in commission for his unreported financial transactions related to real estate investment recommendations.

Chandler was extradited to the U.S. last year on fraud charges related to other real estate transactions. After a receiver was appointed to the development company, he is alleged to have pre-sold units multiple times and not put deposits in a trust. It was determined, he had secured 149 purchasers for 91 units and was unable to account for $12.2 million, which was paid to his development company.

Surrey accountant permanently banned by financial regulator

The MFDA sanctioned Patel for his part in the real estate marketing scheme. According to the ruling, he is permanently prohibited from conducting securities related business in any capacity with mutual fund dealers. Also part of the settlement agreement is a $25,000 fine and he must pay for costs in the amount of $5,000.

Read more: ASC: New penalties for convicted fraudulent real estate developer