Realtor gets caught trying to make $400,000 illegally shadow flipping, gets fined $8,000

By Amy Chen

A Vancouver Realtor who got caught trying to make $400,000 illegally shadow flipping a property in addition to a slew of other illegal activities has been fined a $8,000 and given a 45-day licence suspension by the industry watchdog.

Xiao Zhong (Jordan) Guo of the notorious New Coast Realty made an offer for a $7.5million dollar property at Minoru Boulevard on behalf of his company Jia Construction Ltd. in April 2015, but failed to inform the sellers and their realtor that he was the owner of the company.

Two days after seller accepted the offer, Guo put the property on market for $7.9 million, for a potential $400,000 profit without having invest his money into the deal, and circulated a brochure advertising the sale without the original seller’s consent.

He did something similar with a West Vancouver property a week later.

“On two occasions Mr. Guo published and circulated brochures advertising a property for sale by assignment,” a disciplinary committee of the Real Estate Council of British Columbia ruled. “Each time, he did this without the consent of the property owners. Licensees must act honestly and with reasonable care and skill.”

The committee ruled that Guo’s actions contravened section 3-4 of the Council Rules, which states that “when providing real estate services, a licensee must act honestly and with reasonable care and skill.”

In an unrelated case, Guo was also found guilty of double agency without consent in violation of the same rules.

Shadow flipping has come under heavy criticism for artificially inflating Vancouver’s already sky high housing prices while shortchanging the seller and robbing the government of revenue.

“If they’re selling to somebody else, then they would collect two, three, and sometimes four or more commissions on a single sale,” BC’s Attorney General David Eby alleged last year, when he was BC NDP’s housing critic. “There are a number of concerns that this realtor had about this—in particular, the purchasers were not paying, as would be expected, the property transfer tax each time the property was sold.”

ThinkPol needs your help. While other media outlets are content reproducing real estate industry press releases, we carry out painstaking analysis of real estate data, spending hours combing through the data. And the data isn’t free. Each title search alone costs us $12.

Please consider chipping in to help ThinkPol.

26 Responses to Realtor gets caught trying to make $400,000 illegally shadow flipping, gets fined $8,000

  1. Anonymous says:

    Have a source for this?

  2. Ruixin says:

    I’m sure he learned his lesson. I’m sure he’ll not do it again.

    I can give you a good deal on the Burrard Street Bridge.

    • Rob says:

      If I’m making 400,000 and the fee/penalty is 8,000, why would I stop doing it?

      • Hmm says:

        Yup. It’s all optics. By having a “law” in place with minimal consequences (most people refuse to believe the latter) the law makers satisfy their duty by “protecting the public”. Bwahaha.

        At least this law is somewhat better than the federal legislation for airline passengers where there isn’t even any enforcement

      • Ryan says:

        Well he had his license revoked and I imagine his future transactions will be closely monitored. At the same time, this happens all of the time with friend’s/family of agents.

      • Anonymous says:

        Good question!

  3. Rich Realtor says:

    Amy Chen spreading FUD about the Real Estate industry, probably tipped off by the jealous jobless folks on Twitter.

    Realtors are successful because we help successful people who have climbed the property ladder maximize their investments. While Amy and her twitter buddies were doing yoga and drinking soy lattes, we worked hard to build our careers.

    This level of envy is, in all honestly, shameful. Get a job, save some money, buy a condo, and work up your way up the property ladder, instead of wasting your lives tweeting all day and wasting time writing for pathetic rags.

    • Anonymous says:

      eat the rich

    • Comfree says:

      “While Amy and her twitter buddies were doing yoga and drinking soy lattes, we worked hard to build our careers.”

      Not sure I’d call something one can study for and pass in a weekend a career. Granted, I’m sure your falacio skills took longer to develop.

    • herbert dickhammer says:

      You people are scum. Die in a fire with the rest of your shit eating industry

    • Reply to Rich Realtor says:

      Right… Kathy Tomlinson of the Globe and Mail posted about it on Twitter too… she is such jealous, jobless troll who has done no investigative work into the real estate industry… [eye roll]

      Come on Bob… if you are going to post things under a fake name, at least do your homework…

      • Anon says:

        You mention “Kathy Tomlinson of the Globe and Mail” and then immediately call her “jobless”. Are you mentally deficient? You then give Bob a hard time for posting under a fake name, all while posting anonymously yourself. Brilliant! Maybe if you had done your own homework, you could have a real profession.

        • Anon's 3rd Grade English Teacher says:

          Anon, I think you should take some reading comprehension classes before being allowed to comment again…

        • Hello... Sarcasm... says:

          re-read Rich Realtors original comment where he references “jealous jobless folks”… hence the eye roll…

          The Bob comment is in reference to Bob Rennie

    • Hmm says:

      Another unethical and immoral realtor has spoken?

      Time to deport you to a work-camp in China and then harvest your organs one by one. Haha.

    • LOL says:

      Sounds like Rich Realtor wants want people to think he’s a realtor when in fact he’s just an antagonist living in his dad’s basement streaming Kodi and playing video games.

    • Rich Realtor's Wife says:

      Realtors are a leech on society. They do not help successful people maximize their investments. They simply urge people to buy houses with advice that is worse or no better than Google tier advice.

      The majority of realtors are unsuccessful at most of their other jobs and turn to this job as a last resort – an attempt at entrepreneurship without any of the hard work.

      • Don says:

        That’s the most honest (and cutting) comment I’ve ever read about realtors. I’m going to bet you’re actually a rich realtor’s wife. Nicely done.

    • Vladimir Pudding says:

      Internet 101
      Don’t feed the trolls.

  4. Anonymous says:

    We need to have more of these stories and articles to uncover all the sketchy / potentially illegal activities of the Real Estate industry… people need to spread the word! (i.e. guys like mortimer_1 on twitter who I believe first broke this news piece)

    Amazing that there is such a lack of oversight – this guy got basically a free pass. Any other REAL profession and they would have easily had their license taken away.

  5. Francis says:

    8000 ??? He should have been deported. Canadian systems are so easy to abuse and get away with is that Vancouver has become haven for real estate mafia.

  6. Paul Eichmann says:

    Canadian leadership has made it loud and clear they will do nothing to protect us from these economic parasites, it is up to us to stand up and do something about it. It is time for regular Canadians to organize and rally around a new cause to rid ourselves of these greedy destructive scumbags by any means necessary because our futures and children’s futures depend on what we choose to do about it.

    • WestVan says:

      “Canadian leadership has made it loud and clear they will do nothing to protect us from these economic parasites”

      Exactly, both the previous and current federal government are actually facilitating it by way of handing out 500,000 plus 10 year visas while the CRA turns a blind eye.

      Ten-year visas, in addition, provide greater opportunities for increased tax avoidance and evasion, which Hyman and other immigration specialists say is an ongoing problem in Canada’s real-estate industry, especially in B.C.

      Hyman is particularly concerned about how a diverse range of real-estate speculators in B.C. use various means to obscure the legal ownership of property.

      A multiple-entry visa offers “many people exactly what they want,” said Hyman.

      “They want to be seen as tourists. They want to be off the radar of the Canada Revenue Agency,” including by being able to claim they’re not residents of Canada for income tax purposes.

      The multiple-entry visa gives wealthy foreign nationals increasing opportunities to use their low-income-earning offspring and others as proxies, sometimes called “nominees,” to buy Canadian property on their behalf, according to Lee and Hyman.

      Many wealthy foreign nationals employ their international-student children as channels for investing in real estate, they say, noting there are 130,000 foreign students in B.C., 51,000 of whom are from Mainland China.

      “Some people are transferring their wealth to their dependents and then relinquishing their permanent resident status in Canada. They’re applying instead for 10-year visitors’ visas,” Hyman said.

      He is particularly aware of foreign nationals, as well as domestic Canadians, using “bare trusts” and other loopholes to purchase properties and avoid paying taxes in B.C.

      His worries echo a Transparency International report that says stronger tax enforcement is desperately needed in Canada and especially for Metro Vancouver, where governments can’t identify the owners of almost half the region’s 100 most valuable homes.

      “B.C. is losing tens of billions of dollars in unpaid taxes related to property,” said Hyman.

Leave a Reply

Your email address will not be published.