Montreal police say two men were arrested last month in connection with real estate fraud and appeared in a Montreal courthouse on Wednesday to be formally charged.

In a news release, Montreal police said Mark Blumenthal, 51, and Constantin Niphakis, 42, were arrested on Nov. 15 in Côte Saint-Luc for defrauding around 10 people of more than $1.5 million.

According to police, the duo runs a business called J’achète des maisons CA$H or, translated into English, I pay cash for homes.

The pair would present themselves as investors looking to renovate homes and resell at a profit.

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Police allege they would entice potential homeowners with the prospect of a quick transaction.

“They were often in a vulnerable situation,” said the police of the victims.

After signing a sales contract in front of a notary or lawyer hired by the pair, the sellers will receive an on-site cash payment representing a portion of the total sale value.

Police said the victims were told they would receive the rest of the payment after the house was flipped but within a one-year maximum time frame.

As part of the scheme, police said the alleged fraudsters would also take out a significant mortgage loan with a private lender without ever renovating the home or fulfilling any of their obligations.

As a result, the lending agency would seize the property while the alleged fraudsters made off with the money obtained through the loan.

“Meanwhile, the victims are waiting for a second payment that will never come,” police wrote in a French news release.

Police are asking anyone with information on the activities of Blumenthal and Niphakis to call 911 or the Montreal Info-Crime line at 514-393-1133.

None of the allegations have been proven in court.

Police are warning Montrealers to exercise caution when it comes to real estate transactions.

“Beware offers that seem quick and advantageous,” police said.

They also recommend dealing with professionals you’ve chosen yourself and whom you trust.

Other tips to protect yourself are available on the Canadian Anti-Fraud Center website.

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