Moishe Alexander aka Sandy Hutchens aka Moishe Hutchens (Main Leader and Professional Con Man) - This man is the main convicted criminal in this enterprise. He has a past of over 20 separate instances regarding various mortgage fraud, extortion, and misrepresentation acts committed against mostly innocent tenants, innocent borrowers, or people incapable of understanding the complex scams created by Moishe Alexander aka Sandy Hutchens. As noted by the Jewishwhistleblower site, Hutchens was sentenced to 2 years of house arrest and probation for some of the most ill concieved acts that even involved the scam of his mother in law. He has had 2 attorneys formally reprimanded for their inolvement in his schemes. He has also been recently sued in Canada for taking advanced fees for loans that he committed to but never had the capacity to complete. In his latest scam, Hutchens has been involved in advanced fee scams involving large developers in the US. He basically fronts to be a large commercial lender (Canadian Funding Corporation) with years of experience and over 200+ transactions ranging from land to $100M developments. He advertises and pushes the fact that he has various joint venture partners, including TD Canada Trust, one of Canada's largest commercial banks. He has recently issued over $500M worth of loan commitments to various developers in Florida without the financial ability or capacity to fund anything near this volume. He has transmitted these commitments selling everyone involved that TD Canada Trust/Commerce Bank US are joint venture partners with him. When contacted, TD Canada Trust denied ever being a joint venture partner with Hutchens and Canadian Funding/308 Elgin Street has NEVER been a joint venture partner or syndicating partner with TD Financial Group or any of its subsidiaries, including Commerce Bank US. In fact, TD's attorney immediately notified Alexander to remove any mention of TD on the CFC web site and requested that anything relating to TD including a misleading reference letter posted by Alexander. He also claims to have control of various estates and access to private money in the jewish community when in fact he does not. He labels himself a private lender in Canada with the ability to fund creative deals. The extortion of these advanced fees are sought and once recieved Hutchens does everything he can to derail your dealings with them and bail out of the deal. More information to follow...
Jan Luistermans (Appraiser / Inspector) - Jan is often sold as the former President of the London Board of Appraisers and a man who has inspected and appraised over 200 properties in the last 3 years alone. He has a letter on the CFC website (http://www.canadianfundingcorporation.com/) from Realty 1 who is the real estate company that he is a real estate agent for. Luistermans is not an appraiser and does not have any qualifications, licenses, hours, courses, or expertise as a commercial or residential appraiser. The same can be said for his inspection abilities. He is not licensed as any type of property inspector and does not have any qualifications in this area. He is simply a normal real estate agent in Canada and nothing else. He is often the first point of contact when Moishe Alexander issues a loan commitment/term sheet for a loan. He visits the property, charges $7,500, and issues a 1 page inspection report stating that the property is "acceptable." When asked to provide a real inspection/appraisal report he avoids trying to provide one. The only time he provides an appraisal is when an appraisal is done by a 3rd party company so that he can copy it and use the basic premise. What is even more troubling is that he claims to be an inspector/appraiser when he comes to properties in the US, a place he knows nothing about. According to the CFC site "Jan Luistermans is CFC’s resident inspection and appraisal expert. With decades of real estate and valuation experience under his belt, Jan travels the continent inspecting properties and valuing projects."
Barry Poulson - while not much is known about this attorney, he is the general point of contact to attorney's in the US, promoting Alexander/Hutchens and his group. As an attorney in Canada he usually reaches out to prominent attorneys in the US and promotes the services provided by Alexander/Hutchens providing a sense of stature and professional ability. In a specific case in Florida Poulson reached out to Ron Gache and various people at Broad and Cassell, a prominent Florida law firm. He promoted the services of Canadian Funding/308 Elgin Street Inc., both controlled by Alexander/Hutchens and placed them in contact with various developers who were subsequently scammed by Alexander/Hutchens out of millions of dollars in advanced fees.
Bryce Coates - Bryce Coates is sold on the CFC website as a senior mortgage consultant for CFC. He is actually a mortgage broker who has had his license for 2 years, has not conducted anywhere near the amount of business that the website states, and is actually licensed under a different company, not CFC. Much like the US, a broker can only place their license under one company. Coates has his license placed under another company that is not CFC and cannot legally do business under CFC, per Canadian law. Recently, Alexander/Hutchens has changed the web site to suggest that Coates is now a partner of CFC but still lists him as a senior mortgage consultant under CFC "Staff."
Marty Lapedus - Marty Lapedus, a fellow Jewish member of the community, is a supposed public accountant (though no license has been seen or provided). He is also an associate of Alexander/Hutchens and is involved in financial and accounting dealings. Alexander/Hutchens tries to give CFC further credibility by vaguely associating himself with people like Lapedus.
HOW THE SCAM WORKS:
- Alexander/Hutchens and CFC/308 Elgin Street Inc. will usually be referred to a broker, lawyer, or developer. He is sold is being a "heavy hitter" in the financing business and has the ability as well as the ties to the jewish community (which by the way he converted to just a few years ago) to fund large transactions.
- Once you are introduced by telephone and start to discuss the intricacies of the deal, Alexander will talk very vividly about his joint venture arrangements with TD Canada Trust and other players in the market. He will then push hard to get a commitment/term sheet to you with a specific outline of how he will fund the loan with vague language outlining his rights as a lender and your rights as a borrower. All the while, neither of his companies are licensed to conduct such business in Canada or in the US as a licensed lender, which is especially required in Canada. The term sheet will come in the name of 308 Elgin Street Inc. He will quietly discuss his association with various estates which he manages as well as peoples money he gathers from the community. This is all a lie. He doesn't manage any estates and TD Canada Trust has vehemently denied any dealings with Alexander in a joint venture capacity. He is barely in a capacity to do small 2nd and 3rd mortgages and has no record or proof of funding any loans in excess of $2M.
- When the terms of the deal are analyzed the interest rate and details are made to be very appealing. Once you agree, Jan Luistermans is scheduled to come visit the property. Before he comes down to visit, a loan commitment must be signed. Alexander/Hutchens requires a deposit directly to 308 Elgin Street, usually around $50-75K. He also involves a reputable law firm to represent his interests in the US. The commitment requires fees to also be dispersed to the attorney, usually in the range of $25-50K. Luistermans then comes down to the property and conducts an inspection and makes you believe that he is doing an appraisal. He is not licensed to do either but charges $7,500 to do this inspection/appraisal. For your $7,500 investment you get a 1 page letter that basically says this property is "acceptable."
- After Luistermans issues this letter, Alexander/Hutchens demands a 2% upfront lender administration fee. As of 9/5/08, there were over $400M in loan commitments issued. At a 2% rate, it is believed that nearly $8M has been extorted this way. He demands that this money be wired directly to him in Canada.
- Once the money is wired over, the prominent attorney that he hires with the borrower's money is engaged to start working on creating a mortgage and all legal documents to close the transaction. However, this "friendly" exchange goes on for a couple of weeks but is only short lived. Hutchens/Alexander asks for the information contained in the commitment. Once this information is provided and you think you are nearly ready to close, he starts to make demands for information that are either out of the scope or not relevant to the deal. He then starts to become confrontational in his dealings with you. Mainly, he communicates via fax through large memos that make comments on the recent dealings. He even goes as far as lying, distorting, and manipulating information to his benefit while actively trying to derail the loan commitment.
- Once you have provided the necessary documents, he does not remain in contact for a couple of weeks and claims to be "underwriting the loan." He then comes back with underwriting conditions from the joint venture partners (which are not real) and finally gets to the heart of it, which is to ask you for some piece of information or verification that you cannot provide. He further sets out to find a way to get out of the commitment through some form of manipulated loophole.
Some of the tricks that they will use are (1) Web site - making you think that they are a reputable lender who has the ability to provide large scale funding (2) Choice of a prominent law firm in the US to lend credibility (3) Mention of TD Canada Trust and various joint venture partners which are not real (4) Mention of estates and jewish community money (5) Jewish background and mention of jewish faith to make you believe that he has quietly accumulated a fortune worth of money (6) The mention of hundreds of previous deals through info on the web site and various phone conversations.
DON'T BE FOOLED INTO BELIEVING THE CREDIBILITY OF THIS SCAM. IT IS NOTHING BUT A SCAM PUT TOGETHER BY ONE OF THE MOST MALICIOUS, DEVIOUS, AND MANIPULATIVE CON MEN IN CANADIAN HISTORY. IN AN ATTEMPT TO MAKE PEOPLE FORGET ABOUT HIS PAST, HE CHANGED HIS NAME FROM SANDY HUTCHENS TO MOISHE ALEXANDER AND CONVERTED TO ORTHODOX JUDAISM. TO THIS DAY, HE IS UP TO MORE EXTENSIVE AND DEVIOUS SCAMS THAN EVER BEFORE. READ THESE POSTS CAREFULLY, MORE INFORMATION TO FOLLOW...