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Son Had Perpetrated A Fraud Via Power Of Attorney
A settlement took place in Victoria, whereby the parents transferred their property into their son's name. The son signed on behalf of his mother under power of attorney, with the father apparently also signing the loan documents. The loan documents were witnessed by a mortgage broker, who confirmed the borrowers identities. Loan funds of $220,000 were dispersed
On attempting to register the First Title Insured Lender's mortgage, a requisition was received from the Land Titles Office, seeking confirmation that the donor consented to the transaction, given that the attorney (being the donor's son) was receiving a benefit.
On contacting the donor's solicitors, it was alleged that the son had perpetrated a fraud. First Title was notified and instructed a private investigator who worked with the Victorian police. The results of that investigation suggested that the son perpetrated the fraud with the assistance of the mortgage broker.
As the First Title Insured Lender did not have a registered mortgage, First Title paid out the lender's loan.
