Two years after fraud allegations first hit, a court is finally taking control of a brokerage’s assets. An Ontario judge has placed Wynn Realty Corp under receivership as of October 25th. Realtor Courtney “Lynn” Simpson and her broker/husband Kenneth Simpson are alleged to have defrauded dozens of clients. This isn’t the Realtor’s first rodeo either—she previously served time for mortgage fraud.
Ontario Court Places Wynn Realty Corp Assets Under Receivership
Wynn’s assets are finally under Receivership, two years after regulators became aware of the issue. An Ontario court appointed Grant Thornton as the Receiver on Oct 25, 2023. One of the accounts transferred had around $775k in cash, which is quite a bit of money—but not nearly enough to cover even the fraud victims.
Brokerage Is Facing Fraud Allegations Adding Up To Millions In Loses
The latest update comes after the allegations of fraud against the brokerage. Courtney Simpson is accused of defrauding 18 victims out of an estimated $1.9 million in deposits. Police have said some victims were “wiped out” after the losses.
RECO, Ontario’s real estate regulator, suspended the brokerage’s license after becoming aware of the allegations in 2021. They also issued a Notice of Proposal to Revoke the brokerage as well as Kenneth’s licenses, due to failing to return deposits upon request.
Courtney currently faces 80 charges of fraud, uttering forged documents, and breach of trust. Her partner/broker faces an additional 30 charges in relation to carrying out the transactions.
Toronto’s “Most Charming Fraudster” Has A History of Fraud
Courtney Simpson is no stranger to fraud—she previously served time for it. In 2007, she was convicted of a mortgage fraud scheme that saw investors lose between $300k and $1.5 million. There were an estimated 60 victims that lost a combined $15 million, and less than $7 million was recovered. She served 5 years in jail for the crime.
The ordeal earned her the title of “the most charming fraudster” in Canadian real estate.
That begs the question—how does someone convicted of mortgage fraud exit jail and become a Realtor? Considering real estate is the largest source of wealth for many Canadians, it’s shocking the country allows the industry to be largely self-regulated with passive enforcement.