A Richmond realtor is facing a lawsuit after allegedly being involved in a shadow flipping real estate scam more than five years ago.
Kenneth and James Davis, as executors of the estate of Jessie Davis, have filed a lawsuit in B.C. Supreme Court naming Amex-Sunrich Realty in Richmond, businessman Ze Yu Wu and realtor Alban Wang as defendants.
They claim they were targeted by the alleged scammers, who left a pamphlet at the home, and then set up a meeting complete with a pre-prepared sales contract.
The court documents allege the executors signed a deal allowing Wang to represent both the buyer and the seller after he promised to be impartial.
“The Plaintiffs were told by Wang that he does not take sides and treats the Seller and Buyer impartially, he stated he must fully disclose everything with the only exceptions being that if the buyer was willing to pay more he cannot tell us and if we were willing to take less he cannot tell the Buyer.”
They allege Wang convinced them to sell the home for $860,000, but after the deal was completed, the original buyer flipped the property for a profit by re-assigning the contract as a shadow flip, without the executors knowledge.
And they claim Wang lied to them when they asked him directly about the assignment clause in the sale.
“Wang advised that the reason for the clause was that the seller needed protection should he run into any financial problems, but there was no way Sunny (Wu) would invoke the clause because he intended to build his dream home on the property.”
The pair claim the defendants “conspired in a real estate scam that deprived the plaintiffs of the fair market value of the property,” and also hit as many as 60 other property owners in the area.
The plaintiffs are seeking the difference between the sum of $860,000 and the profit made on the shadow flip, as well punitive damages.
None of the allegations have been proven in court.
Realtor disciplined in past
When reached by phone, Wang says he hasn’t been served with the documents and couldn’t comment.
In a statement issued to CKNW, the Real Estate Council of BC says Wang currently holds a realtor’s license, and works for Interlink Realty.
It says he was investigated and disciplined in July of 2012 for “failing to submit deposits and trade records to his brokerage as promptly as required under the Real Estate Services Act.”
He was suspended for two weeks and required to pay enforcement expenses and take remedial education.
It says it cannot confirm whether Wang is currently under investigation.