Accused are alleged to have forged mortgage documents and altered terms of agreements
A bombshell case in Canada's real estate industry has seen the Alberta Securities Commission (ASC) and the RCMP’s Integrated Market Enforcement Team (IMET) announce criminal charges against Yuvraj Verma and Rohit Sethi, both of Edmonton, following a sweeping investigation by the Joint Serious Offences Team (JSOT).
Between 2018 and 2020, Verma, 42, and Sethi, 50, allegedly raised approximately $6.8 million from investors for an Edmonton-based real estate venture, using several corporations including Cancom Development Ltd. and Roxdale Gardens Ltd.
According to authorities, the pair told some investors that 45% of their funds would be reserved for future dividends, with the remainder allocated to the project. Instead, “no funds were retained for dividends, and investor money was allegedly diverted to other businesses controlled by the accused,” the ASC said in a statement.
The investigation also revealed that investors were given lottery tickets for a chance to win a residential lot in Leduc County, Alberta. While a winner was selected, the promised prize was never awarded. “The accused are also alleged to have forged mortgage documents by altering the terms of mortgage agreements with investors to the financial benefit of the accused,” authorities said.
The charges—fraud over $5,000, making and circulating a false prospectus, managing a ticket scheme, uttering forged documents, and laundering proceeds of crime—underscore the ongoing risks in private mortgage investments. Mortgage frauds can lead to higher interest rates, additional fees, or approval of loans that borrowers cannot afford, resulting in foreclosures and financial ruin. The case also highlights the importance of regulatory oversight.
Verma and Sethi were released on conditions, including a ban on selling or trading securities on behalf of others and restrictions on contacting certain investors. Their first court appearance is scheduled for October 1, 2025, at the Edmonton Court of Justice.
Make sure to get all the latest news to your inbox on Canada’s mortgage and housing markets by signing up for our free daily newsletter here.
