5

FRAUDS THAT TARGET
INDIVIDUALS

I AM A PLAYER NOW

After finishing work selling cars, David headed off to his favourite restaurant for some dinner and a few drinks. David liked the popular downtown nightspot because it gave him an opportunity to mix and meet with other professionals. At thirty-five years, David had big plans for himself and was working towards what he called his “five-year plan.”

David wanted to be in marketing and promotions. He had already met and struck up an acquaintance with a couple of nightclub owners, laying the groundwork. All he needed was to make the right connection, and he would be well on his way.

When he entered the club, he noticed that the restaurant was full. He saw a place at the bar in the lounge so he made his way over, sat down, and ordered a rum and coke. Sitting beside David was a well-dressed man in his mid-thirties. His short black hair and dark complexion made David think of European or Mediterranean descent. When the man ordered a drink from the waitress, David detected a slight English accent. David had not noticed him in the lounge on previous occasions and, always being on the lookout for a potential opportunity, would have made note of this gentleman.

The man introduced himself to David as Dr. Santos Coffman and said that he had just arrived into town from London, England. Santos had recently come into an inheritance and bought a partnership with Angle Recording Studios in London. He was here to scout out some local but unknown talent that he could sign to a recording deal. He was also interested in possibly making a few investments into the local nightclub scene. Perhaps David would know of someone?

David could not believe his good fortune. This was the break he was looking for, and just like in the movies, it was happening to him because he was in the right place at the right time. David told Santos of his plans to work in the promotion industry and that he could introduce Santos to a few friends of his that were looking for an investor for their nightclub. David also had a line on a blues singer whom Santos might be interested in hearing, Big Motha Mike. After a few more drinks, and a couple of phone calls by David, the two agreed to meet the next night.

The following night, David introduced Santos to Jack and Duane, two partners in a downtown nightclub. The club had been running for six months, but as Jack explained to Santos, it needed an influx of capital to make some repairs and upgrades. Santos agreed to look over the club and, seeing that it was only two blocks from the main nightclub district, agreed that the club did have the potential to be a major draw. Santos agreed to invest in the club as a one-third partner. If Jack and Duane would draw up the papers, he would meet with them the next day and present them with a cheque.

Also playing that night at the club, through David’s arranging, was Big Motha Mike. Santos listened attentively. When the set was over, he agreed with David that this was the type of sound he had come looking for. Santos met with Big Motha Mike and offered to sign him to a four-year contract with Angle Records in London with a retainer of $250,000.

The next night, Santos met with Jack, Duane, and David back at the original restaurant. They ordered drinks and a celebratory dinner to seal the deal. Upon signing the contract, Santos gave Jack a cheque for $250,000 to become a one-third partner in the nightclub. Santos did not forget David, either.

As a token of his appreciation for introducing Santos to Jack and Duane, Santos gave David a cheque for $10,000 and asked if David would be interested in being hired on contract as Santos’ marketing manager. David readily agreed and ordered a bottle of champagne to celebrate.

Unfortunately for David, Jack, and Duane, there was more to Santos than met the eye. Dr. Santos Coffman, whose real name was Parker Clement, had arrived in Calgary about two weeks before meeting David. He had just completed eighteen months in a B.C. correctional centre for fraud and selling false stocks. Once he was settled in his residence and after checking in with his probation officer, Coffman/Clement began to look for a job that would help him in his new home.

Clement applied for a counselling position with a social services agency. During the interview process, Clement claimed to have a degree in psychology from Dalhousie University, with a minor in business administration. He also claimed to have extensive experience in counselling troubled youth — probably drawing on his own personal experience. When asked for documents to support his qualifications, Clement explained that after two days in the city, his car had been broken into and his briefcase was stolen. However, he had already asked for copies of his diplomas and should be able to provide them within a few weeks.

Once hired, Clement then went to work on his real job of creating his new persona. He practiced writing the name Dr. Santos Coffman and his initials until it was free flowing. He then purchased business cheques online, with the corresponding software to produce business and personal cheques. Finally, he utilized the Internet to purchase false European identification.

Clement was a typical fraudster in that he had more than one scheme going at the same time. Besides portraying himself as a high roller and nightclub investor, he also presented himself as a knowledgeable broker in the stock market.

Clement frequented the nightclubs of the East-Indian community, where, due to his good looks, he was able to meet plenty of young women. He would then explain that he had opportunities to purchase stocks and that this would be a good investment for them. Clement would provide projections and monthly statements to substantiate his claims and to quell any concerns his victims would have.

Unfortunately for Clement, all of his various schemes began to collapse around him at the same time. The fraudulent cheques he had given to David, Jack, and Duane were drawn on a non-existing account and failed to clear the banks into which the cheques were deposited. Regrettably, Duane and Jack had already written cheques to suppliers to have a new roof put onto the club, and for the teardown and construction of a new interior for the club. Consequently, when Clement’s cheques bounced, so did everyone else’s.

When some of Clement’s investors failed to find the stocks on the various stock exchanges, they wanted their money back. Of course, Clement was unreachable by phone or through his address. The investors were left with useless pieces of paper.

As for the documents provided to his only legitimate employer, several spelling mistakes on his “diplomas,” and forged signatures on other documents, eventually gave him away. Clement’s diploma claimed that he had a “Bachlor in Major in Business Administration.” He also had a second diploma claiming that Clement had a “Bachlor in Minor in Psychology.” We often read and see what we expect to see, passing over what later appears to be glaring errors. In this case, it took six weeks before the administration noticed the incorrect spelling of “Bachelor” and the wording on the diplomas. As well, Angel Records exists in London, but not Angle Records. Someone who was involved in the entertainment industry should have noticed this mistake.

Clement failed to show up for work so that he could be fired. Instead, he was arrested and pled guilty to the charges, receiving two years in jail.

What Clement had relied on for his first scheme was the desperation of his victims and their lack of business skills. People like David, Jack, and Duane often overlook subtle signs because they believe that the fraudster is genuine. The money that is being offered is coming at just the right time so other considerations are often overlooked. In David’s case, he believed that he was a more sophisticated financial advisor than he really was. David had the desire and the ability, but not the experience to recognize that he could be duped by someone like Clement.

It has always been a wise practice to do your research when entering into any business venture. The use of the Internet, Voice over Internet Protocol (VoIP) telephone services, and other media can literally provide a world of potential opportunities and hazards. Today, it is even more important to “look before you leap” when accepting business partners. Legitimate investors will be happy to provide contacts and references. Talk with your bank manager or financial advisor. Often they can perform a financial check that will at least tell you if the person you plan to deal with is legitimate.

As for buying stocks from someone out of his briefcase, again a small amount of due diligence on the part of the victim would have saved these victims a lot of grief. An Internet search of companies and stocks will quickly show if they are available, and whether this is a worthwhile investment. Do not get caught up in the “limited time opportunity.” It’s been said before, “You want a good stock tip? Don’t listen to stock tips.”

THERE’S ONLY YOU

After thirty-three years, Brent had decided it was time he should get married. When Brent met Lacey, he felt that she was the girl for him. The two began dating. Eventually Brent asked Lacey to marry him, and she accepted. To begin setting up their home, Brent gave his fiancée his debit and visa cards, along with his PIN, in order for her to make payments at his bank while he was working. Unknown to Brent, Lacey had other ideas.

Lacey used Brent’s debit card and credit card to withdraw money from Brent’s account so that she could go partying. Lacey also acquired several of Brent’s personal cheques, which she made out to herself for cash, so that she had what she called “pocket money.” Brent was not aware of Lacey’s spending until the bank contacted him about missing some bill payments. It wasn’t the only thing that Brent was not aware of.

Before she met Brent, Lacey worked as an apprentice electrician for a small electrical business in the city. The business was owned by Patricia and her daughter Elizabeth. Lacey would do minor electrical work and run errands for Patricia when she needed supplies picked up. Because the business office was operated from Patricia’s home, Patricia had a habit of leaving the company credit card on her desk, in order to keep it handy for paying couriers.

On several occasions, Lacey would take the credit card and treat herself to dinners and drinks at the local pub. She would also get cash advances on the credit card, for pocket money, when she was out at the bar with friends. Lacey would often sign Elizabeth’s name on the credit card receipts and return the card to the desk.

After a few months, Patricia was reviewing the books. She saw several bar tabs that she did not recognize. Patricia called the credit card company and asked for copies of these receipts. When they arrived, Patricia saw that Elizabeth had apparently signed for the tabs. Patricia knew that Elizabeth did not usually frequent the area where the bar was located, and she suspected that Lacey was behind the bills. When Elizabeth and Patricia confronted Lacey, she quit and stormed out of the house.

Meanwhile, while Lacey was engaged to Brent, she was also living with another man, Mathew. Mathew and Lacey had been living together for a couple of months, although there was never any talk of marriage. During the time that she was with Mathew, Lacey had stolen one of his chequebooks and wrote several cheques to herself from Mathew’s account. Mathew was not aware of his missing chequebook until Lacey went away for a holiday.

As there was no firm commitment between Mathew and her, Lacey took the opportunity to accompany another boyfriend, James, to Prince George for a couple of weeks. While James was attending business meetings, he would let Lacey use his truck for the day. Lacey would also use his credit cards. Whenever James began looking for them, Lacey would always manage to “find” them between the seats of the truck or in James’ other pair of pants. On one occasion, she also stole cash destined for the bank from James’ briefcase, altering the deposit slip to escape detection and James’ notice.

While engaged to Brent, living with Mathew, and travelling with James, Lacey also found the time to apply for a credit card in the name of another boyfriend, Rodney, with a supplementary card in her name. Lacey completed the application and had the cards sent to her mother’s address. Lacey was able to obtain a total credit between these two cards of $10,000.

When the bills and phone calls from credit companies began to arrive, Brent, Mathew, James, and Rodney went to the police. They would have confronted Lacey, but she had already moved on to other things.

After her falling out with Brent, et al, Lacey met up with her long-time boyfriend, Chris Collins. Chris and Lacey had a scheme where they would advertise vehicles for sale on eBay. The listing contained a picture of the truck and described the work that had been done. Chris would advertise the truck and he would get several offers.

One such offer was from Todd from Virginia. Todd enjoyed buying and fixing up trucks, and then showing them at various car shows. This truck, a 1967 Ford, was one that Todd had always liked the looks of. He was very disappointed when he was told that the bidding had been closed. Fortunately, two days after the bidding closed on the Ford, Todd was contacted by Lacey, who told Todd that the purchaser of the truck backed out of the deal. She and Chris were wondering if Todd was still interested in buying the truck.

Todd couldn’t believe his good fortune and agreed to the purchase price of $6,500, plus $1,500 to cover shipping costs. Lacey explained to Todd that they had an account established with a financial company that specializes in foreign exchange, and gave the details of wiring the money. Todd made arrangements to wire the money to Canada, and waited to get his truck. After four weeks the truck still had not arrived, so Todd called Lacey and Chris asking if there was a problem. Chris explained that the truck was still in customs but should be released within a day or two.

After two more weeks of waiting, Todd again called, but this time he did not get any answer. When Todd called eBay security, he was informed that the transaction was outside of eBay’s control because the sale was completed after the bidding. They couldn’t help him. Todd then called his local police department.

Unknown to Todd, Lacey and Chris had completed this scam over twenty times on victims across the United States. By targeting American victims, and completing the sale after the closing bids, Chris and Lacey knew that eBay would not investigate them. As a result, instead of one investigation linking all of the victims to the pair, there were several smaller reports in various states.

Most of Lacey’s frauds were straightforward, using a credit card or cashing cheques and forging signatures. What this story, and Clement’s, illustrates is that most fraudsters have more than one scheme going on at the same time. When discovered, the different schemes aren’t often connected and are treated as separate and distinct occurrences, with different victims’ and different methodology. It fails to give the whole picture and the scope of the frauds being committed.

As one of the largest retail operations in the world, eBay has developed procedures designed to protect the consumers and the sellers registered. If, as in Rick’s case, consumers choose to make purchases outside of these procedures, then eBay is not responsible for any fraudulent transactions. However, they will cooperate with any investigation to the best of their abilities, while keeping the information and profiles of their clients confidential.

When using Internet services such as eBay, follow the rules and you’ll likely not have any regrets. When you step outside the safeguards established by these companies, you become very vulnerable to unscrupulous people.

When you purchase items online, make an attempt to find out about the seller. Get a phone number and address that you can call back and check on, in case there is a problem with your order. Conduct an online Internet search and see if there have been any unsatisfied customers, or if the person has been selling lots of items. Although not necessarily conclusive, the information will help you make a more informed decision.

Remember, a legitimate business person should be happy to show that they are legitimate, and that they are trustworthy.

Lacey was charged with several counts of fraud and theft involving the use of the credit cards and cheques and stealing cash. She pled guilty to some of the charges and received a six-month sentence, to be served on weekends, and a $1,500 fine. Chris and Lacey were also charged for twenty-three counts of fraud each regarding the eBay truck scheme. Most of these charges were withdrawn because witnesses were unable or unwilling to travel to Canada to attend court, and the numerous states where the victims lived made extradition of Chris and Lacey unfeasible.

MARRIAGE PROPOSAL

Juliet was a middle-aged, single, professional woman living in the city. She owned her own condo, her vehicle, and had managed to put a sizable amount away for her retirement. Her friends considered her attractive, and her fellow employees considered her dependable and caring. Juliet was a nurse at the hospital and as such worked shift work. This made it difficult for Juliet to meet other people and “doing the bar scene” was not really her thing.

One Sunday, while reading the paper, Juliet came across a personal ad that caught her eye:

Single male looking for friendship and companionship with intelligent single female. Must be caring and a good conversationalist.

Juliet could not say afterward what it was that made her decide to call, but she thought a phone call couldn’t hurt anything. She called the number listed and met Chase.

Chase Pike was a charming gentleman on the telephone. He had a quiet voice and told Juliet that he was a bit older than she was, in his mid-fifties. He worked for one of the airline companies and was also a part owner in a moving company that caused him to be away a lot of the time. He cared for his sister, an invalid who could not leave the house. She’s the reason he placed an ad in the paper, to meet someone like Juliet.

The relationship went on for several months. It progressed from phone calls to meetings for dinner, and eventually talk moved towards marriage. Juliet and Chase began to look at building a new house to share their life together.

One Saturday, the couple located a new development for upscale condominiums that appeared to suit their needs. They met with the developer and arranged for a $20,000 deposit on their new condo. As Chase’s money was tied up in the moving business, Juliet agreed to write a cheque for the deposit. As the weeks and months went by, Juliet was looking forward to moving into their new home.

One day, Chase came to Juliet’s home and informed her that the developer had declared bankruptcy. As a result, they had lost the $20,000 deposit that they had put on the condominium. Chase told Juliet that he went to the developer’s head offices and argued and shouted with the owner and their lawyers, but to no avail. Juliet was devastated. Chase comforted her and assured her that things would work out for the two of them.

A couple of weeks later, Juliet and Chase were again looking at new homes and discussing possibilities. It was then Chase told Juliet that he had an opportunity through the airline to purchase shares for $15 a share. Chase showed Juliet the business section of the local paper and explained how the stocks of the company were currently trading at $22 per share. Chase described to Juliet how he could purchase 5,000 shares and roll them over in a couple of weeks for a profit. They would regain what the crooked developer stole from them.

Juliet was a bit skeptical, but it seemed to make sense to her as Chase explained it. She was sure that she had heard how employees of large corporations get inside information in advance of the general public and are able to make a good profit. Chase had explained that he had to be the one to make the investment because he was an employee. That way everything would appear to be above board and legal. As Chase’s funds were still tied up in the moving business, Juliet provided the $30,000 to Chase.

After making the investment, Juliet and Chase’s relationship began to cool. Chase seemed to be constantly away in other provinces with his moving company, and rarely saw Juliet when he was home. He did call her two to three times a week, but it just wasn’t the same. Finally, Juliet decided she couldn’t carry on this way. She was going to break her engagement to Chase. Juliet had never been to Chase’s house before, but she located the address in the telephone book. Gathering her courage and putting her emotions in check, Juliet drove to Chase’s house. When Juliet rang the doorbell, the door was answered by a woman in her mid-forties. Juliet wasn’t surprised; after all, Chase had told her that he cared for his handicapped sister. This woman showed no signs of any incapacity. Juliet introduced herself as Chase’s fiancée and stated, “You must be Chase’s sister. Chase has told me about you.”

The woman replied, “I am not Chase’s sister. I am his wife.”

The two women stared at each other until Chase’s “sister,” Barbara, told Juliet to come inside and explain herself. Inside the home, Juliet began to tell Barbara the events of the past year. While she was doing this, Chase walked into the house and joined the two women. This was more than Juliet could stand. She began to cry and accuse Chase of cheating her and lying to her. Finally, Chase stood up and told Juliet that she had to leave his house, she was upsetting his wife. Juliet fled from the house and drove back to her home.

As it turned out, Juliet was not Chase’s only victim. Chase’s story was a lie from the moment he placed his ad in the paper. Chase had an extensive record for fraud dating back to the 1960s, when he had spent time in jail for fraud offenses. He was not in his mid-fifties but was actually sixty-nine years old when he met Juliet. Nor did he work for an airline, although his moving company appeared to have been a real asset at one time. The charade that Chase performed with Juliet as his victim had also taken place with other attractive, intelligent, middle-aged women.

Barbara, Chase’s “sister,” had also met Chase through a personal ad in the newspaper. After a whirlwind romance, Chase and Barbara got married. He was still operating his moving business, but the recession caused some unforeseen business expenses. Chase convinced Barbara to give him $50,000 to meet these expenses for the short term. Afterward, Barbara learned that Chase had really used the money to pay off his previous debts and his ex-wife.

Chase had been married four times before Barbara met him. In the latest instance, Chase met June, once again through a personal ad in a newspaper. June was also a caregiver who worked various shifts and had difficulty meeting people. June and Chase had a romance that culminated in marriage and a honeymoon in Mexico, paid for by June. When the couple returned home, Chase moved back into his own residence and did not live with June. After two weeks, June filed for divorce. Chase’s other three marriages followed the same pattern.

Chase Pike is a parasite who preys on vulnerable, lonely women. His pattern is such that he answers personal ads in the newspaper to meet vulnerable women to achieve his ends. Unfortunately, these lonely, and to their minds desperate, women fall for his stories and are taken advantage of. They are often too embarrassed to report these instances to the police, feeling that they are at fault. Efforts to locate other victims are often frustrated by the known victim’s reluctance to go public. Fraudsters like Pike count on these traits to continue with their lies.

For the record, Pike took back the money originally given to the developer within a week of the down payment, and vanished, as did the money for the stock options that Juliet provided. Had Juliet been a less caring individual, and been more willing to treat her financial arrangements with Pike as a business venture, perhaps she might have avoided losing her home and savings.

When dealing with money and assets, always consult an outside party, such as a lawyer or investment broker, who can provide guidance and protection. Prenuptial agreements are often derided by couples, but they can serve a valuable purpose.

WHAT YOU SAID IS NOT WHAT I HEARD

Francis had been living with her boyfriend for a little over a year when they decided to break up and go their separate ways. Francis was twenty-five years old and had a steady job at a store in the mall. Without her boyfriend, however, rent and other bills were going to be tight.

Francis looked on the Internet and discovered a site listing potential roommates. After reading several of the entries online, she decided to settle on one that appeared to meet her needs. The ad stated that Janice was twenty-four years old. She was being transferred to Regina from London, England, and her company was willing to relocate her. Janice went on to describe herself as a non-smoker, enjoyed hiking and camping, and liked to listen to jazz music.

Francis thought that Janice sounded like the ideal roommate and contacted her through her e-mail account. Janice replied the next day, and thought that she would be able to move within the next month. Francis informed Janice that the rent would be $800 per month, plus her share of the utilities, which would likely be another $150. Janice thought that this sounded reasonable and would have her company send her a cheque to cover expenses and to seal the deal.

A short time later, Francis received a cheque from Janice’s company, St. Andrews Golf and Resort, with an address from Toronto, Ontario. The cheque was made out to Francis but was for the amount $23,950. Surprised, Francis contacted Janice and asked her what was going on, and why the cheque was for so much money. Janice explained that, with her transfer and relocation, the company obviously made a mistake. The cheque sent to Francis was supposed to cover the first month’s rent and utilities, $950. The company was to issue a second cheque for $23,000 to cover other expenses that Janice might encounter. Five thousand of the $23,000 was supposed to be sent to Janice’s grandmother in the United States. According to Janice, her grandmother was undergoing an operation, and this money was to offset the hospital costs that were beginning to grow.

Janice was so sorry that it was such an inconvenience for Francis, but asked if she could do her a favour. Would Francis be willing to deposit the cheque into her account and wait for it to clear? Then Francis could keep the first month’s rent and send the balance of the cheque back to her. Janice suggested that it would be better if Francis kept the first month’s rent and a damage deposit as well, especially for the inconvenience that this was causing her.

Francis decided that she would agree to deposit the cheque; after all, it was a company cheque and she knew about St. Andrews Golf and Resort. Besides, if it cleared the bank, what would her risk be? Francis went to her bank, deposited the cheque, and went away for a week to visit some family.

After ten days, Francis called her bank and asked her if the cheque she deposited from Janice had cleared. The bank told Francis that the cheque had cleared. Upon hearing this, Francis wrote Janice a cheque for $16,250, keeping $950 for the rent and an additional $800 for the damage deposit, and sent Janice’s grandmother a cheque for $5,000.

Three days later, when Francis tried to withdraw some cash from her account, she was unable to do so. Her account was overdrawn by almost $22,000. When Francis went to the bank to find out why she could not access her money, she discovered that “cleared” and “hold” mean different things, and that Francis was responsible for reimbursing the bank for the money she sent to Janice.

The cheque that Francis received from Janice’s company is known as a forged cheque or bleached cheque. Sometimes it is also called a counterfeit cheque. This terminology is wrong because the only thing that is considered counterfeit, with respect to fraud, is money. A forged or bleached cheque is a legitimate cheque that has been altered, by various means. The cheque amount and the payee are changed so the fraudster can deposit the cheque into a bank account or forward the cheque to an unsuspecting victim. When the victim gets the cheque, it is usually for an amount greater than what was expected. The fraudster will come up with a reason for the large amount that sounds plausible to the victim. The fraudster will instruct the victim to deposit the cheque, keep the amount that they are owed, and usually a bonus for the inconvenience, and send the balance back to the fraudster.

Unfortunately for Francis, she didn’t understand the terminology used by her bank. To her, a cleared cheque was the same as having the money in her account and available. To the bank, a hold and cleared are two different things. When a cheque is deposited into a bank, it is forwarded to a clearing house that will review the cheque for non-sufficient funds, closed accounts, or other instructions that may be on the account. It does not necessarily ensure that the cheque is authorized by the account holder. The cheque is then forwarded to the account holder’s bank for processing.

A hold is typically when the bank is waiting for the funds to actually arrive at the bank from the account that the cheque was written against. Your account may actually show the funds deposited into your account. However, these funds will generally not be available for your use until the hold is lifted and the money has been made available from the account that the cheque was written against. Unfortunately, these two terms are often used interchangeably and cause confusion to those of us who are not familiar with the nuances of financial terminology.

The only time the money in your account belongs to you is when the bank has been credited, or paid, by the account holder that the cheque was drawn against. This is also referred to as having the cheque honoured. Always ask the bank if the cheque has been honoured and if the bank has been credited the funds. If it has not, do not touch the money.

Much like reading the fine print on a contract, we are responsible to understand the terminology of banks and other financial institutions. Ask questions and find out about the bank’s policies for deposits and withdrawals. Whether there was a breakdown in the bank’s protocol for detecting counterfeit cheques is immaterial. Francis was still held responsible to replace the money she sent on Janice’s behalf.

VEHICLES FOR SALE: GOOD CONDITION,
LOW MILES, MANY OWNERS

Melissa owned a 1995 Toyota Camry for ten years. It was not her first car, but it was her favourite, with all of the optional features that she could get put into it. She enjoyed driving the car through the mountains and taking it on summer drives, but with her business, it was no longer a practical vehicle.

Melissa drove into Red Deer, Alberta, where she came across a used car dealership — Cars-4-You. The sign advertised trades and consignment vehicles with on-site financing available. Melissa was not really planning to buy a new vehicle that day, but a 2003 Chevy Silverado in the lot was just what she was looking for. She pulled into the lot and was met by a salesman, Karl Cervantes.

Cervantes had been in the car sales business for over thirty years. He had worked in Alberta, British Columbia, and Saskatchewan. He was very successful and was known throughout the industry as a hard-working go-getter. While other salesmen would wait for clients to come into the lot, Cervantes would scour the papers and call people offering to sell their vehicles on consignment. Cervantes’ specialty was high-end luxury vehicles.

Cervantes took Melissa to the Chevy and showed her all of the features: crew-cab, air conditioning, and power locks and windows. Everything imaginable on a truck appeared to be here. For only $28,000, it was a bargain. Melissa fell in love with the truck and agreed to the contract. She consigned her Toyota to Cervantes and drove off with her new truck. She had it registered in her name and was happy with her purchase.

The Chevy Silverado was not Cervantes’ only sale that day. Madeline had her Lexus that she wanted to consign, and Jeremy had his Mercedes also on consignment. Cervantes was able to sell these vehicles for the asking price of $35,000 and $42,000 to two families that had driven in from Calgary.

Two months after Melissa bought her truck, she received a call from the Royal Canadian Mounted Police, asking if she owned a 2003 Chevy Silverado. Melissa said that she did and the Mounties asked if she would come into their office to talk. When Melissa arrived at the police station, the Mounties explained that the truck was consigned to Cars-4-You, but the owner had never received payment for the vehicle. Melissa produced her bill of sale and registration and explained that she had bought the vehicle in good faith from what she believed was a reputable dealer. The Mounties agreed but advised that she may be contacted in the future.

At the same time, other purchasers and consignees of Cervantes were being questioned by the police and being asked to provide copies of bills of sale and registration for the vehicles they now possessed.

In a three month period, Cervantes had sold over forty-five vehicles on consignment, averaging $30,000 each. The owners who had put the cars on consignment were not contacted by Cervantes when their cars sold and did not receive any money from him. The purchasers of the cars believed that they had bought their vehicles in good faith and that they now owned the vehicles. Meanwhile, Cervantes had not been seen for the past two weeks.

Although not a hard and fast rule, purchasers of a vehicle who produce a bill of sale and registration are generally deemed the owner of the vehicle. However, in the case of consigned vehicles, the original owners may still be considered the legal owner in a civil court, even though the new purchaser has paid the intermediary. It makes for a messy, agonizing situation for everyone.

When selling a vehicle on consignment, ensure that you do your homework and use the following guidelines:

1. Find out about the reputation of the dealer and read the contracts that you are given. Contact your provincial consumer services office or the Better Business Bureau. With the widespread use of the Internet, it is possible to learn whether people have had problems with specific dealers or companies.

2. Don’t be afraid to follow up on a regular basis and drive by the dealership to ensure your car is still on the lot.

3. If you purchase a vehicle, even on consignment, conduct a lien check before purchasing. If there is a lien on the vehicle and you still purchase it, it is more likely you will lose the car should something go wrong.

In the case with Cervantes and his victims, three people who had their vehicle sold on consignment were able to get their vehicle back after hiring a lawyer and going to civil court. The other victims were unable or unwilling to spend the time and money to go to court, and therefore lost their vehicle and the money for which it was sold for. As for Cervantes himself, his whereabouts were unknown. Arrest warrant applications for forty-eight charges of fraud were applied for as well as charges under provincial legislation with respect to operating a car dealership. Six months after the charges were filed, a confidential informant notified the police that two of Cervantes’ victims had tracked him to Toronto, where they took matters into their own hands and assaulted him with baseball bats. The next day Cervantes took a flight to London, England, and has not been heard from since.