The RCMP have expanded their breach of trust investigation of former senator Mac Harb to include allegations he committed mortgage fraud when he applied for a loan against a property he claimed to own.
In an affidavit sworn last month, Cpl. Greg Horton says he is now investigating the former Liberal senator and MP for fraud related to mortgages on two properties that Harb owned in Cobden and Westmeath, Ont.
Horton alleges that Harb secured a $170,000 mortgage on a home in Cobden in December 2007 and then, only hours later, transferred 99.99 per cent ownership to a diplomat from Brunei named Magdalene Theo.
The change in ownership was never reported to the Royal Bank of Canada.
“This action put the bank at a potential risk, constituting a fraud,” Horton said.
Then, in 2010, Harb claimed to be the sole owner of the Cobden property when he applied for a $240,000 mortgage on his new home in Westmeath, Ont.
“This was a fraudulent misrepresentation of the facts on the Westmeath house mortgage application,” Horton wrote.