An Ontario court has found an unwitting mortgage co-signor liable to RBC for over $108,000.

The loser in the case was a regular working mom with three kids. Her mistake was accepting payment of $6,000 from strangers to co-sign a mortgage that later turned out to be fraudulent.

Moreover, the court ruling showed that she barely read the mortgage documents she was asked to sign, and allowed fraudulent income documents to be used in her name.

Madam Justice Anne Molloy of the Ontario Superior Court of Justice summed up her decision by saying:

• “She (the defendant) was foolish to sign documents she did not read and did not understand,”
• “She was foolish to rely on strangers to the extent she did.”
• “She had the opportunity to tell the Bank the true nature of her involvement, but did not do so.”
• “That is her own responsibility, not the fault of the bank.”

Apparently there are still plenty of oblivious accomplices willing to take money for use of their own good name and credit. Court rulings like this are a reminder that free lunches still don’t exist—especially when it comes to helping someone you don’t know get a mortgage.

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Here is the full case decision.

Here is analysis by the Toronto Star’s James Daw.