Crime
The first accused Islamic terrorist to illegally cross the southern border and shoot an American for jihad
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Sidi Mohammad Abdallahi shot by Chicago Police
From the Center for Immigration Studies
First Blood: Anatomy of Border-Crosser’s Chicago Terror Attack
“I can tell you the threats that come from the other side of the border are very much consuming FBI field offices, not just in border states.” – FBI Director Christopher Wray, November 2023 testimony before the House Homeland Security Committee
(Part 1 of 3)
CHICAGO, Illinois – Since October 26, 2024, was Saturday, the mandatory Jewish day of rest when the orthodox may not drive, the orthodox Jewish man woke early to walk the mile to his suburban Chicago synagogue.
But his wife and children decided to stay home, a rare exception, while he went alone to weekly morning service at KINS of West Rogers Park synagogue, the second largest synagogue in Chicago. Their choice may have been divine providence for them all, he and his wife later recounted to the Center for Immigration Studies (CIS) in late December.
Wearing religious garb – a yarmulke for his head and a clear plastic prayer shawl bag over a shoulder – that readily identified him as a Jew, the 39-year-old man headed out on the 20-minute walk through West Rogers Park, his predominantly Jewish upper-middle class suburban neighborhood where crime of any sort is virtually unknown.
He recalls “just walking, like spacing out,” nodding good morning to other walkers. Suddenly, a noise that sounded like a lightning bolt strike yanked him from the reverie.
“I like felt something hit my shoulder, and I fell,” the man recalled in a December interview at his house in his first and only interview, given to CIS on condition that identities remain undisclosed for fear of future targeting.
“I thought like some lightning crashed and hit a tree branch and that it fell on my shoulder. I wasn’t aware that the sound I heard was a gunshot.”
As he scrambled to his feet, he looked down to see a bloody hole in his suit lapel and realized his arm had gone numb. He turned in time to see a young man wearing a green workman’s safety vest – a clothing item common among pro-Hamas demonstrators worldwide – running away with a pistol in one hand, looking back at him. In that split second, the bleeding Jewish man spoke to his assailant.
“Did you just shoot me?!!?”
The assailant responded by turning around and chasing after his victim. He fired twice more to finish the job but missed. The assailant’s gun then jammed, authorities later said, giving the victim a chance to sprint for cover.
“I just ran. I thought he was still chasing me. I was screaming, ‘help!’ and just ran down the street.”
But that was just the beginning of an unprecedented life-threatening storm of violence that would go on to wrack this peaceful neighborhood for another 20 minutes in what state prosecutors would later deem a full-fledged planned terror attack. Thunderous, echoing gunfire gripped the upper middle-class residential area in white-knuckled fright, leaving shell casings strewn across streets, blood stains on sidewalks, bullet-riddled vehicles, and residents cowering with children and pets inside their homes.
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Sidi Mohammad Abdallahi
“Allahu Akbar!” Sidi Mohammad Abdallahi screamed the notorious Islamic terrorist war cry as he fired, including yet a third time at his first victim.
Police would finally arrest Abdallahi, after trading fire with him and critically wounding him on a sidewalk between manicured lawns of the leafy neighborhood. Neighborhood children later found the reflective safety vest he discarded in someone’s back yard. Later, in a hospital, the Jewish victim would find himself waiting next to his terrorist assailant in triage, separated only by a thin sheet.
But unlike most Islamic terror attacks, such as the New Years Day ISIS-inspired vehicle-ramming attack by a U.S.-born citizen in New Orleans, one circumstance about the one in Chicago elevates its national security and political significance to a different plane.
The Chicago shooter – a 22-year-old Mauritanian national – had illegally crossed into the United States through Mexico in 2023 and joined some 50,000 other border-crossers who arrived in Chicago since 2022 and whose deportations under the coming Trump administration are about to become subject of a heated national political conflict.
The distinctive border-crossing aspect that made the Chicago attack possible benchmarks it as the first terror attack by a border-crossing Muslim extremist who drew blood from an American victim. And that key enabling element matters because it brings to fruition fears expressed with increasing frequency by homeland security professionals that migrants prone to act on Islamic extremist beliefs would come in on the historic mass migration tide of millions illegally crossing the Southwest border from around the world.
“I think greater fidelity about who is coming into this country and how they are getting in is essential,” FBI Director Christopher Wray testified to Congress in November 2023, when asked about terrorist border crossings nearly a year before Abdallahi’s attack. “I can tell you the threats that come from the other side of the border are very much consuming FBI field offices, not just in the border states…threats that come from the other side of the border are affecting every state, yes.”
But if seeking “greater fidelity” about how terrorists enter the country was important to Wray, the FBI oddly kept an arms-length distance from the Chicago case for reasons that no one has demanded, while quickly taking charge of the New Years attack in New Orleans and the Tesla truck bombing in front of Trump’s Las Vegas hotel.
Instead, Illinois State’s Attorney prosecutors were left to charge the wounded Abdallahi with terrorism under the state’s anti-terrorism statute after local police detectives found he methodically planned his attack on Jewish targets, inspired by Hamas’s tactics in its war on Israel and Jews. His online searches, they said, showed Abdallahi had probably planned to attack Jews as they prayed inside Chicago’s metro synagogues but opportunistically shot the Jewish man walking to one, sparing the lives of many.
Abdallahi’s online search history showed he’d researched two West Rogers Park synagogues and an area gun store. His recovered cell phone brimmed with violent jihadist, pro-Hamas, anti-Semitic murder propaganda, prosecutors and police disclosed. And there was the vest indicating solidarity with pro-Hamas demonstrators worldwide.
“This was not anything but a planned attack…an attempted assassination of these people,” Assistant State’s Attorney Anne McCord Rodgers said during Abdallahi’s arraignment on terrorism and other charges. “This was a calculated plan, on a public street…and attempted slaughter of that person and law enforcement officers.”
But the attack won’t make it to trial; nor will further details become known of the sort that, normally, the FBI, counterterrorism intelligence professionals, and elected leaders would rigorously study to prevent more attacks by those who have already illegally crossed the southern border and are here: On November 30, Abdallahi hanged himself in Cook County jail, robbing all of a potentially illuminating trial.
The prospect of lingering unanswered questions and “greater fidelity” about how this one happened prompted CIS to travel to Chicago in a quest to learn more about the attack and to emphatically remind the country that a border-crossing terrorist – a scenario often disparaged as hypothetical fantasy – has drawn first blood.
Overlooked terror attack with national security and political significance
Public and media attention to the October 26 attack quickly receded amid national preoccupation with the impending November 5 presidential election and its aftermath of Donald Trump’s victory, which was largely based on his promise to end a four-year mass migration crisis created by his predecessor. Throughout the campaign, Trump and his surrogates had often cited the terrorist infiltration national security threat posed by open-border policies he intends to reverse.
Yet the Chicago attack somehow has defied wide acknowledgement or any public sign of attendant introspection. In one of his final campaign rallies, in North Carolina on November 4, Trump did introduce the Chicago terror attack as a new justification for his plans to deport the illegal aliens who entered during the Biden-Harris border crisis of 2021-2024 in large numbers.
“Only days ago, an illegal alien from North [Africa] – and this was a rough one,” Trump began. “Just happened days ago, who Kamala Harris let into the country with her horrendous open border – just a dangerous, horrendous situation – traveled to a Jewish neighborhood in Chicago and tried to execute a Jewish man on the street, shooting him in the back as he walked to synagogue.”
Trump went on to describe the rest of the attack and drew resounding applause when he noted that Chicago police shot Abdallahi and “ended his rampage.”
No media outlet quoted Trump’s new line about the attack, which he hasn’t mentioned again.
The Abdallahi attack, however, warrants the same dedicated attention and study as all other terror attacks, for lessons and tactics used that might help authorities prevent future ones by other illegally present border-crossers from Muslim-majority countries of terrorism concern. The Border Patrol has apprehended more than 400 migrants on the FBI’s terrorism watch list since 2021, in addition to hundreds of thousands “special interest aliens” from 26 countries the U.S. deems a national security threat, according to an October 2024 House Judiciary Committee report.
Beyond FBI Director Wray’s testimony about the need for “fidelity” about terrorist travel over the border, the Chicago attack gives life to recent public U.S. intelligence community warnings about the vulnerability. In both its 2024 and 2025 annual Homeland Threat Assessments, the Biden administration’s Department of Homeland Security warned that migrants with terrorism connections and interest have and will continue to “exploit our border” amid historic mass “migration trends that complicate our ability to identify and interdict these threats.”
“Over the next year, we expect some individuals with terrorism ties … will continue their efforts to exploit migration flows and the complex border security environment to enter the United States,” the 2025 public report stated.
Beyond the chance for improved preventative measures that might detect and deport other illegal alien border-crossers from Muslim-majority nations, the Abdallahi attack warrants attention in time for an almost certain national political battle now ginning up nationwide – but with an epicenter developing in Chicago – over Trump plans to mount more aggressive interior deportations.
Democratic Chicago Mayor Brandon Johnson has repeatedly vowed to defy Trump’s deportation program and protect every illegal immigrant from ICE agents, presumably to include largely unvetted border-crossers from special interest Muslim-majority nations like Mauritania. Trump’s appointed “Border Czar” Tom Homan, who visited the city in December, swore to outmaneuver its leaders.
“The mayor of Chicago, not a real bright guy, says Tom Homan isn’t welcome to Chicago,” Homan said recently in a speech in Phoenix. “Well guess where Tom Homan’s going to be on day one? Chicago, Illinois! You don’t want me there, come get me! The people of Chicago have already spoken.”
If Chicago becomes a political epicenter for this legitimate partisan policy argument, discussion of the Mauritanian’s attack in the city would serve an obvious public interest by introducing a citable fact on the ground.
But to collect the public interest benefits of improved counterterrorism and fuller discourse about Trump’s deportation program in resistant interior cities, the public must know what happened. And as Trump described, the life-threatening attack on Jews, police, and paramedics more than qualified as “a rough one”, even though only two were injured, including the shooter, and no one died.
True terror in an attack
After he was shot through the shoulder, the Jewish man fled down the street looking for someone to let him in.
Resident Ken Boggs was just backing his car out of his driveway to go to a wedding when the wounded man suddenly pounded on his driver-side window.
“I’ve been shot!” Boggs recalled the man telling him through the closed window. “And I was like, ‘what do you mean you’ve been shot?’ I was kind of taken off guard but then he pulled his jacket open and I could see the blood and was like, ‘okay you’ve been shot.’” Boggs called 911 from inside his car but before he could act further, other neighbors across the street pulled the victim into the home of a woman who worked as a nurse, who began treating him indoors. An ambulance soon pulled up, and Chicago Fire Department paramedics began prepping him for the ride to a hospital.
None of them were safe yet.
This all occurred during what would turn out to be about a 15-minute lull in Abdallahi’s attack. Chicago police and the Illinois State Attorney’s Office declined to discuss the case, but the following account of the attack was pieced together based on police reports, witness testimony, and police body cam video released after CIS filed a Freedom of Information Act request.
After his gun jammed, Abdallahi disappeared into an alley and, rather than flee and disappear, began moving from back yard to back yard preparing to attack again.
Some 15 minutes later, when police were surveying the original crime scene for evidence and the paramedics were working on the first victim in the nurse’s home, Abdallahi was in Malka Reich’s backyard preparing to attack them all. An Orthodox Jewish homemaker and mother of four, Reich was home alone that day with her youngest, a baby. She’d been reading upstairs near a window while the baby slept, heard the initial shots just outside a quarter block away and heard the victim screaming for help. She looked outside and saw the gunman running.
Once the police arrived a few minutes later, curious neighbors began to venture outside.
“Women were pushing strollers, like life was back to normal,” she said.
Reich’s doorbell camera videotaped her a few minutes into the ensuing lull stepping out on her front porch – a large Israeli flag hanging from it next to an American flag and identifying her home as Jewish — to ask a dog-walking neighbor on her lawn if he wanted to take shelter inside. The neighbor declined and walked toward where police were taping off the crime scene and gathering evidence.
But seconds later, she saw through the doorway Abdallahi suddenly appear exiting her very own driveway from her backyard, gripping his pistol in his right hand. Her door camera videotaped it.
Extreme fright overtook her.
“This is a terrorist on my property.” Reich recalled thinking. “When he came back, I realized that this was terrorism. I needed to take this seriously. I felt like I needed to protect my baby.”
She saw Abdallahi turn left from her driveway on the sidewalk, raise his gun, and trot toward the police officers and the dog walker. Her doorbell camera clearly captured Abdallahi shouting “Allahu Akbar” and then he fired, she said, on the dog-walking neighbor to whom she’d just offered shelter. Next came dozens of deafening gunshots as Abdallahi opened fire on the officers, and they returned it amid much unintelligible shouting and screaming.
An Orthodox Jew well-schooled in the October 7, 2023, Hamas attack that butchered 1,200 Israelis in and around their own homes, Reich’s thoughts raced straight to “This is like October 7. How am I going to save my baby?”
She grabbed a kitchen knife and retreated with the child to a back bedroom to hide behind furniture as the gun battle raged outside. But she was tormented by second guessing if this was the correct tactical move.
Maybe a better move, she thought, clutching the knife, would be to hide the child in the attic so that the terrorists would go after her instead. Maybe she could open a window upstairs and leap when they came in like some Israelis did. Except that she knew Hamas terrorists shot and burned others who’d also tried that escape.
“You’re thinking, ‘so many people tried to survive in so many different ways’” during the October 7 massacre, she recalled. “Some people hiding got burned alive. Some people hid and survived. Some people jumped out of a window and got shot. And you just wonder what do you do in this situation?”
Non-Jewish neighbors also went into survival mode when they heard and saw the confusing gun battle between police and Abdallahi, whom they saw fire, then retreat and pop out elsewhere to start firing again.
“It was terrifying. It was just terrifying,” recalled another woman who requested anonymity. After that first lull ended and new shooting began, she grabbed their 7-year-old daughter and hid with her husband in the bedroom furthest from the street.
“The shooting was just constant. It was a volley, back and forth, back and forth. You didn’t know where it was, where it was moving to, where the shots were being directed. We heard lots of yelling. The police were yelling.”
An elderly woman retiree who lives across the street from the Reich family said she opened her front door during the lull and spotted Abdallahi standing facing the other way wearing “this very bright vest” and holding a gun, probably on the Reich property.
“I saw him run that way, and I don’t know anything more except the gunshots started and I hid on my bathroom floor with my dog,” said the woman who declined to identify herself. “The police were firing in this direction. I know my neighbor has a bullet in the back of his car.”
In all, the second phase of the attack lasted nearly four minutes. Five police officers took fire and fired back, police reports and released body cam video show.
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Sidi Mohammad Abdallahi shot by police
The Chicago Police Department declined CIS requests to interview any of the officers or to speak about them or the case, as did a spokesman for the Fraternal Order of Police association.
Doorbell camera video shows one of the officers, from behind the brick cover of a porch stoop, shooting Abdallahi down as the gunman moved toward him on a sidewalk, just feet away. Other body cam video released December 19 in response to a CIS open records request shows highly stressed officers with weapons raised advancing on Abdallahi, yelling at him to put down his weapon and firing.
Abdallahi did not just fire on police. He went for his original victim a third time as two Chicago Fire Department paramedics were loading him onto Ambulance 13. A video shows the gunman firing at it as it raced past him with sirens blaring. Firefighters at the station where Ambulance 13 is assigned refused a CIS interview request.
The victim, whom neighbors had taken into their home for field treatment, recalled that paramedics who showed up to help had him on a gurney and were loading into the ambulance when gunfire raked them all. Rounds were hitting the ambulance.
“The paramedics were like, ‘did they shoot at the ambulance?’ They [the paramedics] told me to duck but there was nowhere to duck,” the shooting victim said, noting that he couldn’t duck being on a gurney. “They were scared. The paramedics were absolutely scared. They were like, this has never happened. They, like, didn’t know what to do. They’re like, let’s just get out of here! Let’s go!”
Door camera video shows the gunman continued firing at the ambulance as it sped down the street past him. In the moment, he was unaware that rounds had hit the vehicle.
After about four minutes, police finally were finally able to shoot Abdallahi down, although he continued to rise and point his gun until he simply no longer could.
From her living room windows, one woman videotaped a police officer just outside on the sidewalk feet away, gun drawn and pointed, shouting and advancing on Abdallahi and then Abdallahi himself.
“They just shot some guy right in front of our house,” she said, before moving to another window and seeing Abdallahi. “My God, there are police everywhere.”
“huuuuhh! Oh my God. Oh my God. Oh my God. What the hell,” was all the woman could muster as she trained her camera through the window down onto Abdallahi sprawled out on her sidewalk. A man’s voice beside her said “Oh shit. He’s dead.”
He wasn’t, of course, not yet. But he would soon hang himself in jail, an incident about which virtually nothing is publicly known.
Aftermath
The bullet had gone clean through the victim’s shoulder blade, tore some nerves and clipped his clavicle. There’d been a lot of blood. But two months later, the man reported full use of the numbed arm and that he was feeling physically fine.
A week after the terror attack, he decided to walk to synagogue again. More than 200 people joined him along the way in a show of defiant support, ringed by state and local police.
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Chicago Rabbi Leonard Matanky
In part because Chicago had become a hotbed of pro-Hamas, anti-Israel demonstrations, a brief controversy rose and fell when the Jewish community noticed that politically liberal state and local officials in line with demonstrators downplayed the attack and omitted the fact that a Muslim extremist had attacked a Jewish neighborhood out of terroristic animus. The spat was largely resolved when state officials added the terrorism charges.
But there was no denying that Abdallahi’s wild melee shook Chicago’s Orthodox Jewish community, which already had security measures in place against anti-semitic mischief related to the war in Gaza, Rabbi Leonard Matanky of Congregation KINS told CIS.
“A person who I care about was hurt. A family had to endure a trauma that they shouldn’t have had to endure, and a community was made to feel unsafe,” he said, inside a Jewish day school that flies a large Israeli flag outside. “Can a person be shot now? It’s shifted a sense of what’s within the realm of possibility in my world. Just as October 7th was a global shift on Jews in the world, this was a shift on the Jewish community in the city of Chicago.”
Few in the community seem more hostile about illegal immigration now than before the attack, Rabbi Matanky indicated, even though it clearly played a role on October 26 and could again at any time. That’s in part because of a long history when Jews around the world had to emigrate away from various persecutions.
But Matanky also said he personally supported Border Czar Tom Homan’s plan to rid Chicago of illegal criminal aliens.
“I would hope that the law enforcement government would be able to get all of the criminals out of every community.”
And Abdallahi’s suicide in jail has left him with a great many questions about how and why he was able to cross the southern border.
“Why did he come to Chicago? How did he come to Chicago. What was his goal in coming to Chicago? Was it to find a Jew and kill him?”
Next: What we know and don’t know about Abdallahi.
Crime
Cartel threats against border agents include explosives, drones
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MxM News
Quick Hit:
Cartels are intensifying their threats against U.S. Border Patrol and ICE agents, employing increasingly sophisticated tactics, including drones, wireless tracking devices, and potential explosive attacks. As President Donald Trump strengthens border security measures, agents face growing dangers both at and beyond the southern border. Experts warn that these threats are an effort to counteract the administration’s immigration enforcement policies.
Key Details:
- Cartels are using drones and wireless tracking to monitor and potentially attack Border Patrol and ICE agents.
- The discovery of a security risk tied to body cameras has led CBP to suspend their use to prevent agents from being tracked.
- Leaks of ICE raids pose additional threats, increasing the risk of ambushes against agents conducting enforcement operations.
Diving Deeper:
Cartels along the U.S.-Mexico border are becoming more aggressive as President Trump enforces stricter immigration policies, with reports indicating that border agents are facing an escalating range of security threats. Fox News reports that Mexican cartels are leveraging new technology to track and potentially harm Customs and Border Protection (CBP) and Immigration and Customs Enforcement (ICE) agents.
Lora Ries, director of the Heritage Foundation’s Border Security and Immigration Center, emphasized that cartels are feeling the pressure from Trump’s border policies and are resorting to dangerous countermeasures. “The cartels are losing business. The encounters at the border are the lowest they’ve been in decades, and the cartels are not just going to give up that business quietly,” Ries told Fox News.
Among the threats agents face are drones used for surveillance, gunfire from across the border, and even the possibility of improvised explosive devices (IEDs). A recent internal memo warned that cartels might be planning to use snipers positioned in Mexico to attack U.S. agents. Additionally, agents are now vulnerable to tracking through wireless technology, prompting CBP to suspend the use of body-worn cameras after a social media post revealed they could be exploited via Bluetooth scanning apps.
The suspension of body cameras has raised concerns about increased false claims against border agents. Ries warned that “the number of claims of abuse are about to jump to exploit this lack of camera use,” underscoring the challenges agents will face without recorded footage of their encounters.
Beyond external threats from cartels, agents must also contend with internal security risks. Leaks about upcoming ICE raids have made enforcement operations more dangerous, potentially exposing agents to ambushes. Ries noted, “That subjects ICE agents to an ambush… Worse would be if aliens stay here and attack ICE agents, that is a risk.”
To counter these threats, border security experts stress the need for increased congressional funding to provide CBP and ICE agents with enhanced technology, equipment, and manpower. Ries urged lawmakers to act swiftly, stating, “Congress needs to hurry up” to ensure agents have the necessary resources to carry out Trump’s mass deportation efforts and secure the southern border.
As cartels escalate their tactics in response to Trump’s immigration policies, the safety of border agents remains a growing concern, highlighting the urgent need for stronger enforcement and security measures.
Crime
“Fake Chinese income” mortgages fuel Toronto Real Estate Bubble: Canadian Bank Leaks
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Canadian Banking Money Laundering Investigation Reposted in Light of Ottawa’s Fentanyl Czar Pledge
In response to Ottawa’s pledge to tackle fentanyl-linked money laundering—including the appointment of a “fentanyl czar” and new intelligence-sharing initiatives with the United States—The Bureau is reposting this February 2024 investigation estimating tens of billions, potentially several hundred billion, laundered through Vancouver and Toronto real estate via underground banking networks tied to China and global narcotics trafficking, including fentanyl.
FINTRAC’s 2023 analysis of 48,000 transactions involving members of the Chinese diaspora exposed vast wire transfers from Hong Kong and Mainland China, funneled through “money mule” accounts linked to students, homemakers, and shell businesses—including law firms. These findings raised serious concerns about Canada’s banking oversight but led to no prosecutions in Canada. The study also revealed laundering patterns central to the U.S. Justice Department’s $3 billion TD Bank case, with international students from China working with Beijing’s United Front networks playing key roles in the TD Bank money laundering, according to U.S. investigator David Asher, a former Trump Administration official. The revelations underscore how the so-called “Vancouver Model”—once centered on laundering drug proceeds through British Columbia government casinos—evolved during the COVID-19 pandemic, embedding itself deeper into Canada’s banking and legal systems. These findings align with research from SFU urban planner Andy Yan, who has documented how foreign capital distorts Canada’s housing market, with mortgage approvals and home purchases far exceeding reported local incomes.
At the heart of this investigation is HSBC Canada whistleblower “D.M.,” who believes they uncovered at least $500 million in dubious Toronto-area mortgages backed by fabricated remote-work salaries from China. After raising the alarm internally, D.M. says HSBC Canada introduced only superficial reforms and pressured him to delete critical records—deepening his conviction that Canada’s financial oversight remains dangerously weak.
Former RCMP investigators Garry Clement and Cal Chrustie, who reviewed D.M.’s evidence, warn that systemic vulnerabilities persist. Chrustie—who has extensively documented Canada’s weak regulations enabling underground banking linked to organized crime in China, Iran, and Mexico—pointed to the 2012 U.S. Justice Department case where HSBC was fined $1.9 billion over $881 million in cartel-linked transactions involving Mexico’s Sinaloa cartel and Colombia’s Norte del Valle cartel.
As Andy Yan has emphasized, governments at all levels bear responsibility for enabling foreign capital to flood Canada’s housing market without adequate transparency. “When you have programs designed to domesticate foreign capital into local real estate, you see these income-to-home-price incongruities,” he said.
Ottawa’s new fentanyl czar is tasked with coordinating intelligence-sharing and enforcement actions with U.S. agencies to disrupt fentanyl trafficking and related money laundering. Trudeau’s government has also pledged to designate cartels as terrorist organizations, a move that could have sweeping consequences for Canadian banks by exposing them to heightened U.S. financial scrutiny and enforcement actions.
It remains to be seen what position Liberal Party leadership favourite Mark Carney—former Governor of the Bank of Canada (2008–2013) and the Bank of England (2013–2020), and a globally influential banker—will take on Canada’s ongoing struggles with financial crime and illicit capital flows. While the Bank of Canada does not oversee financial crime enforcement, Carney’s extensive experience in international financial regulation—gained through his roles involving oversight at global institutions such as the Bank for International Settlements and his active participation in forums on financial stability—suggests he could offer valuable insights into Canada’s banking vulnerabilities. This is particularly noteworthy as he emerges as a political contender and potential Prime Minister.
OTTAWA, Canada — The whistleblower, a Canadian business school graduate, was staggered by the suspicious home loans he discovered in 2022 when he joined a mortgage approval team in a small HSBC branch on the outskirts of Toronto.
He knew of suspicions surrounding Chinese capital in British Columbia real estate, but had never witnessed shady lending while working at an HSBC branch in Campbell River, a bucolic town on the coast of Vancouver Island.
When he arrived at HSBC’s bank in Aurora, an affluent suburb north of Toronto, he discovered explosive growth in home loans to Chinese diaspora buyers during the Covid-19 pandemic.
Chinese migrants living across Toronto were obtaining mortgages from HSBC while supposedly earning extravagant salaries from remote-work jobs in China. In one example, an Ontario casino worker that owned three homes also claimed to earn $345,000 in 2020 analyzing data remotely for a Beijing company.
Before joining HSBC Canada, the whistleblower had studied fake-income mortgage frauds for his Business Masters degree at Vancouver Island University. After arriving at Aurora in February 2022, while digging into the branch’s loan books and interrogating his colleagues, he made mind-blowing assessments.
Since 2015, the whistleblower concluded, more than 10 Toronto-area HSBC branches had issued at least $500-million in home loans to diaspora buyers claiming exaggerated incomes or non-existent jobs in China.
These foreign-income scams spiked during the pandemic, the whistleblower believed, because borrowers could somewhat plausibly claim to be working remotely in other countries while riding out Covid-19 in Canada.
While a small bank of Aurora’s size was expected to issue about $23-million in residential loans every year, this branch had shovelled out $88-million in mortgages in 2020, according to the whistleblower, and over $50-million in 2021.
The whistleblower, whomThe Bureau is calling D.M., immigrated to Canada as an international student from India, making him a minority among mostly Chinese-Canadian co-workers at the Aurora branch.
As D.M. probed his colleagues, his belief gained conviction, that HSBC Canada and other Canadian banks including CIBC had systemic problems with highly questionable mortgages issued to diaspora buyers with unverified sources of wealth in China.
Losing sleep, in April 2022, D.M. sent an audacious email to senior bank executives: “I am going to reveal potential mortgage fraud at HSBC Bank Canada and possibly some employees benefited from the fraud, financially pocketing thousands of dollars, which I call the proceeds of crime.”
D.M.’s explosive four-page complaint triggered an internal investigation that led to some reforms at HSBC Canada according to internal emails obtained by The Bureau.
But more than a year later, D.M. was so dissatisfied with the bank’s response that he risked sharing his story and numerous internal documents for an unprecedented journalistic investigation into Canada’s housing affordability crisis.
“I found out a huge mortgage fraud showing borrowers with exaggerated income from one specific country, China, pretending to be working remotely,” D.M. informed The Bureau in June 2023. “I believe the housing prices in Toronto are linked to this, because this is about income verification in banks, which is supposed to moderate demand.”
The Bureau asked HSBC Canada to review emailed information for this story and provide an appropriate manager for an interview regarding D.M. ‘s records and allegations.
“I won’t have anyone to speak with you directly,” Sharon Wilks, Head of Communications, responded. “But for context: As a global bank, HSBC is at the forefront of efforts to identify, prevent and deter financial crime … We will not do business with individuals or entities we believe are engaged in illicit conduct.”
Wilks added that HSBC Canada “can and do regularly exit relationships with clients whose activities we deem too risky.”
The Bureau’s seven-month investigation into D.M.’s allegations suggests HSBC Canada and other Canadian banks could have issued many billions of dollars in questionable mortgages to Chinese diaspora buyers, and a significant cause of Canada’s real estate bubble is hundreds of billions in illicit fund transfers from China into Canada, and bank lending that amplifies its impacts, especially in Toronto and Vancouver home prices.
“There are thousands of these cases, large scale,” D.M. said in an interview. “Hardworking Canadians are denied mortgages and these Chinese residents forge documents and get mortgages approved, heating up the already hot Ontario real estate markets.”
“These people don’t have steady jobs or income in Canada,” he alleged, “but what they are doing is scams to launder money, and get mortgages using fake documents.”
The Bureau’s investigation included asking seven prominent Canadian experts to assess some of D.M.’s documents, allegations and conclusions.
This investigation suggests D.M. ‘s calculation is plausible, that the Aurora branch and other Toronto-area HSBC branches have issued at least $500-million in questionable Chinese income loans since 2015.
But D.M’s findings could also change the public’s understanding of housing affordability in Toronto and Vancouver, a politically explosive issue expected to frame Canada’s upcoming federal election.
This is because, according to the academics and criminologists that reviewed D.M.’s documents with The Bureau, his evidence fits into FINTRAC’s much broader examinations of suspicious real estate and banking transactions.
In 2023, the anti-money laundering watchdog published a ground-breaking study into 48,000 Chinese diaspora banking transactions.
FINTRAC found that during the Covid-19 pandemic, because Canadian casinos were closed, Chinese underground banking schemes evolved, flooding electronic fund transfers from Hong Kong into Canadian bank accounts that served like corridors for murky real estate transactions.
The Bureau’s analysis also finds that what D.M. discovered in Toronto banks, finally sheds light on mysterious capital flows discovered by a prominent Canadian academic in 2015, in a study of Vancouver land titles and mortgages.
That examination of $525-million worth of real estate purchases in a six-month period found 66 percent of buyers in several affluent neighbourhoods were recent Chinese diaspora migrants, and most mortgages went to buyers with little or no income in Canada.
Similarly, what D.M. found in his probe of pandemic-era loans could be called the evolving “Toronto Method” of an underground banking system discovered first in Vancouver, and found to be laundering a stunning $1.2-billion in cash from Mainland China through British Columbia government casinos in 2014.
This system of shadowy transfers was dubbed the “Vancouver Model” by an Australian professor, and brings together transnational organized crime, affluent Chinese nationals seeking to export their wealth abroad, and Canadian casinos, banks and real estate, in transactions that evade policing because the pivotal cash exchanges are done off the books by professional money launderers serving the global Chinese diaspora.
According to FINTRAC’s 2023 study of 48,000 pandemic-era transactions, this evolving Vancouver Model network “simultaneously facilitates money laundering and the circumvention of Chinese currency controls”
“As a result of the temporary closures of Canadian casinos due to the COVID-19 pandemic, professional money launderers began to diversify their money laundering methods,” FINTRAC’s study says.
“During this time, FINTRAC observed a rise in money laundering typologies involving transferring large sums of funds to Canada from foreign money services businesses, often located in China, notably Hong Kong, and the laundering of the funds primarily through the real estate, securities, automotive and legal professions.”
These wire transfers from China were routed into bank accounts of “multiple, unrelated individuals in Canada,” that served as “money mules” in byzantine networks involving Canada-based real estate developers, real estate agents, mortgage brokers and banks.
These Chinese diaspora bank account owners often claimed they were students, homemakers, office managers, or unemployed, FINTRAC reported.
They sometimes used their accounts to send bank drafts to others in Canada for home purchases, or served as “straw buyers” for offshore investors.
“Mortgage payments are sourced from incoming funds from China,” FINTRAC’s alert said.
FINTRAC’s study doesn’t say that Canadian banks knowingly issued fake-income mortgages to Chinese diaspora buyers in Toronto.
But in an interview, D.M. said banking staff are trained to guard against fraud, and the loan application packages he reviewed in Aurora beggared belief.
“The bank found out that one lady works in a casino part-time but got a $1.4 million mortgage showing over $300,000 annual income,” he said. “Plus she takes money as benefits from the government, for her two kids.”
In other examples, an HSBC mortgage client claimed to earn $700,000 annually for remote work in China, while simultaneously living in Canada and paying off a $10,000 student loan.
Another woman who owned homes in Aurora, Markham and Scarborough, worked part-time as a hairdresser while also claiming to earn $536,280 at a “Business Manager” job in Guangzhou.
“Canadian workers have been put out of the real estate market by people working as a hairdresser that own a couple homes,” D.M. said in an interview.
“How is that fair?”
The most shocking case reviewed by The Bureau, shows that one woman that owns at least four Toronto properties opened her HSBC Aurora bank account in 2013, claiming to be a “Homemaker with no annual income.”
But her Toronto account soon received incredible amounts of wire transfers from HSBC China accounts, and paid out “high value cheques” to third parties for real estate purchases.
This case suggests “Toronto Method” shadow banking described in FINTRAC’s 2023 study has been seeping into Toronto real estate for about a decade.
And yet in 2020, this same woman applied for another HSBC Canada mortgage, claiming to earn $763,000 remotely from her job in China.
This evidence from the HSBC whistleblower complements the seminal investigations of Simon Fraser University academic Andy Yan, who examined sales from August 2014 to February 2015 in several communities on Vancouver’s westside. The average home price in Yan’s study was $3-million.
Looking back at his Vancouver findings in comparison to D.M.’s Toronto banking documents, Yan told The Bureau “I think this helps affirm some of my early work that I did, almost nine years ago.”
“This goes to the core of our banking system,” he said, “and how are we verifying identities and how are we verifying incomes.”
In Yan’s controversial study the vast majority of mortgages went to buyers listing their occupation as home-maker, followed by students, and managers. HSBC and CIBC were the dominant lenders.
Unlike the HSBC whistleblower, Yan had no access to internal banking data regarding the purported origin of funds behind these mortgages taken by Chinese diaspora buyers.
But in an interview, Yan said what he found most interesting back in 2015, was suspicions that Chinese migrants were often buying homes with bulk cash, weren’t accurate. The truth was more complex and seems to be clarified by D.M.’s mortgage findings in Toronto.
“It’s about that global flow of capital, and how it’s multiplied by Canada’s mortgage and lending system,” Yan said. “Because you have to remember, one of the biggest conclusions about my study was that it wasn’t bags of cash that were being used to purchase Vancouver homes outright. They were loans being used. So now, I’m thinking, this is where my study connects up to what you have discovered in Toronto.”
“The interesting story here,” Yan added, “is what happens in Toronto real estate may not repeat Vancouver, but it perhaps rhymes.”
Probably the most famous Chinese property owner from Yan’s 2015 study areas is Huawei executive Meng Wanzhou. In 2009 her family bought a home in Vancouver’s Dunbar neighborhood for $2.73 million, land titles show. In 1998, ten years before Vancouver Model transactions started to surge in Vancouver real estate, the home was sold for $370,000. The home is now valued at almost $6-million.
Ashleigh Rhea Gonzales, a former RCMP data scientist who recently published a criminology thesis finding Chinese diaspora underground banking causes significantly more money laundering into Canada’s real estate than previously estimated, said that D.M.’s findings resemble her own Vancouver Model research.
“This whistleblower’s allegations of widespread mortgage fraud at HSBC Canada align with some of the first-hand accounts from staff of some Canadian financial institutions that I have come across in my research on money laundering in British Columbia,” Gonzales said.
Gonzales, who worked for RCMP’s anti-gang unit in British Columbia until 2023, says she found reports of mortgage fraud accelerated “during the uptick in the Canadian housing bubble after the Vancouver 2010 Olympics,” and continued to surge from 2015 to 2018.
With all this considered, and comparing data sources in this story with previous evidence confirmed in British Columbia’s Cullen Commission, The Bureau estimates that from 2014 to 2023, well over $200-Billion in Vancouver Model and Toronto Method funds could have poured through underground diaspora networks and Canadian financial institutions into Toronto and Vancouver’s real estate.
A federal official not authorized to comment publicly also examined D.M.’s banking leaks for The Bureau, and called this information “explosive.”
The official said money laundering is increasing in Canada, and D.M.’s belief that Chinese-income mortgage fraud has boosted home prices in Toronto is likely true, but also should apply for Vancouver and Montreal real estate prices. The official noted that other nations require tax agencies to verify incomes for mortgages, which isn’t the case in Canada.
“It matters for our next generation because of the impact on the housing market,” the official said.
Queen’s University professor Christian Leuprecht – editor of Dirty Money, a new academic text that probes how Ottawa’s weak regulation has “turned the Canadian federation into a destination of choice for global financial crime” – also reviewed some of D.M. ‘s leaks.
“It’s not a new problem, but you’re taking it to the next level,” Leuprecht said.
“Why does this matter? Because organized crime isn’t just laundering their ill-gotten gains, like any good business person, when they buy real estate, they generate a down payment, then get a mortgage for the rest. Why buy one property when you can buy four?”
“Do you know how many mortgage frauds we have in our books?”
The Bureau’s review of HSBC Canada emails and D.M.’s text messages, shows he came to believe numerous employees at the Aurora branch had direct knowledge of faked Chinese income mortgages, and a veteran manager with oversight of more than 10 Greater Toronto branches knew about broad and questionable mortgage lending for Chinese diaspora clients.
Months after D.M. blew the whistle internally he exchanged texts with another employee, identifying colleagues that they believed had knowledge of diaspora mortgage scams.
The texts suggest D.M. believed HSBC Canada and other Canadian banks continued to hold vast amounts of suspicious foreign income mortgages, which could cause systemic loan quality risks if Toronto’s real estate prices decline.
“Do you know how many mortgage frauds we have in our books,” D.M. texted to his colleague. “It’s insane.”
“She told me,” the colleague replied, referring to an HSBC branch manager.
“She was like, if you do come, you gotta be prepared for the mortgage payout.”
“These people showed fake income and got mortgage,” D.M. continued. “Now interest rate is high, they can’t cope.”
“Other branches did the same thing too,” his co-worker replied. “I heard there’s a lot.”
“Absolutely,” D.M. texted. “All branches engaged in it.”
“This is like the unspoken secret,” his co-worker concluded. “I’m pretty sure other banks have it too. My Aunt have no income and got a mortgage for 700k. They just need a Covenanter from China.”
Generally, in mortgage contracts a covenanter takes responsibility for the loan if the primary borrower defaults.
Internal records reviewed by The Bureau confirm that on April 18, 2022, D.M. sent a lengthy complaint email to senior HSBC Canada executives, informing them of allegations he’d learned from his colleagues.
In it, he alleges that an Aurora manager had informed him of a complaint letter posted to the branch, that accused mortgage brokers and branch employees of colluding in scam mortgages emanating from Mainland China fraud networks.
Pointing to specific examples, D.M. claimed that another branch colleague had admitted processing numerous loan applications without meeting his clients, because a branch manager delivered her subordinates foreign income client applications so “they did not have to get sales themselves.”
“Surprisingly all these clients he would get will have foreign income most of the time very inflated like 400k or 670k a year,” D.M. wrote. “To me that’s suspicious, but he never questioned the branch manager because in Asian culture it’s disrespectful to question elders.”
D.M. also informs his bosses that one Aurora bank manager opened up to him, saying she believed allegations of mortgage fraud collusion involving some branch staff.
“She said yes, she knows specially in Mainland China there is a team who would even answer emails and phone calls verifying [Chinese income] but it’s a sophisticated and well organised scam,” D.M. ‘s email to HSBC Canada managers says.
His complaint explains that he continued to press an Aurora bank manager on her knowledge of fraud allegations.
“When I asked for such a serious issue if she raised a HSBC confidential [complaint] or not she evaded my question,” D.M. wrote. “Now we all love numbers, but I don’t think the bank will like these kinds of numbers achieved through this way.”
Describing why he contacted HSBC Canada executives directly, the whistleblower’s complaint says he felt confused and isolated, but D.M. decided “local leadership if not participated, at least turned a blind eye,” to Chinese fake-income scams, forcing D.M. to “bring up a serious issue against people of superior positions.”
“I could not have stayed silent, in fact I could not sleep well thinking about it,” his April 2022 complaint says. “It reminds me to some extent what happened with the Home Capital Group.”
“The whole thing is wrong on so many grounds,” D.M. continued.
“Now I know one more reason why Canadians and permanent residents are not getting into the housing market. It’s not only HSBC such things are happening across other Canadian banks as well.”
In the Home Capital case, the Ontario Securities Commission fined the prominent Ontario-based subprime mortgage lender in 2017, alleging Home Capital failed to disclose several of its mortgage brokerages had major problems with faked-income mortgages.
D.M. concluded his four-page complaint to senior executives, writing: “I recommend all mortgage deals of this branch in the last 3 years at least if not longer with Foreign income be probed.”
“Bank statements can be verified directly with the foreign banks or use a reputable third party to verify,” he suggested. “When we find someone with Fake ID or trying to impersonate someone we call the cops. But these people, both staff nor clients who did fraud were reported.”
Hours later on April 18, 2022, an HSBC Canada executive emailed back: “I am going to refer this to our Fraud and Risk teams and they will investigate your concerns.”
“The Implications are Broader”
The next day D.M. continued to hound HSBC Canada managers with emails to support his allegations, spotlighting the absurdity of massive Chinese remote incomes claimed by diaspora buyers.
He pointed to one woman with a $1.6-million HSBC Canada mortgage.
“The client claims to be in Canada but [is] a office supervisor in China. [In the] age of remote working in which country [does] a office supervisor makes 400k please tell me,” D.M. wrote.
“[W]hen I asked the co-worker she said her job is not to use the brain or be a police, when I asked do you think she makes that kind of money and how is she doing her job being in Canada to be an office supervisor in China[?]”
Pointing to another document, D.M. warned his managers about Ms. Chen, who claimed to make $721,000 annually as “project manager” for a Beijing telecommunications company, to secure a $1.89 million mortgage.
Again on May 4, 2022, D.M. emailed executives, suggesting internal records for an Aurora client named Ms. Lin had been altered soon after D.M. blew the whistle on fake Chinese income loans.
His email, which included Ms. Lin’s client profile, warned: “Something interesting happened yesterday, they added a China address to go with [the] story of working in China, please see below.”
The Aurora branch banking records disclosed to The Bureau show that Ms. Lin owns three homes in the blocks surrounding Pacific Mall in Markham.
“The client was onboarded on 24th March with Canada address only and Canadian tax residency,” D.M.’ s email continued.
“She claims to be working in China and have foreign income, so the story she is stuck in Canada due to Covid is very interesting. Suddenly yesterday she decided her address in China. Someone saw the discrepancies and the branch team decided to change it.”
“To me that’s a red flag done to align with the story portrayed.”
Next, D.M. exposed Ms. Lin’s foreign income claim.
“She works for Food processing company, a logistics officer making 273k a year,” he wrote. “I don’t know which logistics officer can work when physically in a different company and also who makes 273k working as a logistics officer.”
Citing another internal banking record, D.M.’s email pointed to Ms. Lin’s $273,000 income and said “it’s interesting how they did the verification.”
The email continues to explain that branch records showed Ms. Lin and her husband had a joint mortgage with a balance of $497,000 at CIBC.
But suddenly during Covid-19, Ms. Lin applied for a new mortgage for $1.2 million with HSBC Canada.
“When I see such things I can’t stay quiet,” D.M.’s May 2022 email says. “[I] was assuming with the new rules things will stop, [but] declining the mortgage or retraining the staff is like treating the symptoms.”
He added that many suspicious Chinese income loans had been “flagged by our Fraud Team already.”
The whistleblower’s scathing assessment ends with the observation that D.M. didn’t believe “someone woke up and decided to scam the bank, but [worked with] a sophisticated network of agents who are training people what to say and answer.”
“The implications are broader and as a responsible bank and citizen we have to,” request investigations from the Canadian Revenue Agency or Ontario Provincial Police, D.M. asserted.
The Bureau asked Gonzales, the former RCMP data scientist, to review some of D.M.’s documents and conclusions.
“From what I have reviewed, D.M.’s findings align with what appear to have been commonplace practices by some groups of staff complicit from the front line, middle office, and back office and sanctioned by management,” Gonzales wrote, adding “whether knowingly or not depends on the individual work cultures.”
The Bureau also asked Stephen Punwasi to review D.M. ‘s leaked banking documentation.
Punwasi is a financial expert who founded Better Dwelling, a real estate analysis website with a large following of young professionals trying to understand why they’re excluded from home ownership in Canadian cities.
He also provided analysis for British Columbia’s 2018 report into Vancouver Model money laundering in casinos, real estate and luxury vehicles.
What Punwasi explained to the report’s author, former RCMP executive Peter German, is that even though Vancouver Model money launderers don’t comprise a majority of buyers in Vancouver, their willingness to overbid on home sales causes ripples that sends prices skyrocketing, especially during times when political turmoil inside China triggers increased capital flight.
“In 2015 and 2016 Ontario saw this flood of money from China, just like British Columbia, and it was not just to do with immigration, it was due to President Xi’s political crack down on corruption,” Punwasi said. “I think we’ve seen that capital flight in Ontario and B.C. in two big cycles, also including 2020 and 2021.”
The Bureau asked Punwasi if the banking records disclosed by D.M. help to explain Toronto’s real estate price surges.
“Absolutely,” he said, pointing to the case of Ms. Lin (who claimed a $273,000 remote-work income in China) and her three homes surrounding Markham’s Pacific Mall.
Property buyers that aren’t shopping for shelter, but for capital flight or money laundering vehicles, are what Punwasi terms the “marginal buyer.”
“The marginal buyer is like an exuberant buyer on crack, so if they are motivated to move as much money as possible,” he said, “the larger the mortgage they can get, it helps them to overpay for homes, and that can cause the price to launch.”
“So if you see a townhome in Toronto going for $2-million, you don’t know if it is mortgage money laundering or someone buying a place to live. You just have to compete with the going price.”
Punwasi says housing prices are a powerful political issue that will shape the next federal election.
But at the same time, young generations are confused by competing explanations on the causes of Canada’s housing affordability crisis, Punwasi believes, whether its lack of housing supply due to restrictive zoning bylaws, or increased demand due to recent immigration surges, or other factors that make Canada’s housing bubble an outlier in the Western world.
“There are so many conflicting narratives right now that people find it hard to believe the scale of impact that money laundering can have on Toronto real estate prices,” Punwasi said. “But no one has thought it through, that having criminals run our renting stock is a liability.”
Punwasi also believes that Prime Minister Justin Trudeau’s government has decreased scrutiny of money laundering in recent years.
He points to new data uncovered in a ministerial inquiry from Conservative MP Adam Chambers, who is a proponent of tougher money laundering laws, which found sharp declines in Canadian Revenue Agency audits of FINTRAC leads.
“The systemic corruption in housing has been snowballing,” Punwasi said, “to where it’s turned into, maybe the banks don’t need to check where the incomes are coming from, and now whole generations can’t find stable shelter.”
“Delete, delete, delete”
HSBC Canada emails reviewed by The Bureau show that while the bank appears to have responded to some of D.M. ‘s recommendations in 2022, troubling mortgage applications and problems with existing Chinese income loans continued.
A January 2023 email to an Aurora branch manager from HSBC Canada’s office in Montreal pointed to a client named Ms. B., who worked at an Ontario government casino, and owned homes across Toronto, in Richmond Hill, Newmarket and East York.
Documents show she obtained an HSBC Canada mortgage for $1.26 million in 2016, and that HSBC Canada staff “confirmed” in July 2021 that she was earning $345,000 with a remote work job in Beijing.
Despite her incredible claimed income, documents show, Ms. B. was having trouble paying at least one of her three mortgages.
An email from a “Senior Loss Mitigation” employee in Montreal to an Aurora branch employee says: “client is going through a tough time … her income is limited … I know she collect rent and she use it to pay her second mortgage. Please review the situation with the client to see if there is any special agreement available to her.”
But Aurora’s branch wrote back to the Montreal branch: “What we have told her is … if she really can’t pay, then she just have to put her house for sale … but she doesn’t want to do that.”
In an interview D.M. told The Bureau this case was typical.
“What they are doing is AirBnBing these properties,” he said. “But they can’t manage with higher interest rates.”
He said during mortgage application interviews at the Aurora branch he would often look across his desk and ask questions without letting clients know he was looking at their income claims from purported Chinese companies on his computer screen.
“Most of these people don’t even know what type of company is in their job profile,” he said.
And documents reviewed by The Bureau show that mortgage applications consistent with Fintrac’s 2023 Chinese money laundering report continued in Aurora.
In May 2023, D.M. emailed a senior HSBC Financial Crime Compliance investigator, writing “Just came across two profiles of clients and I have strong evidence these mortgages were also obtained with fake docs and fraudulently.”
When the investigator responded “I will take a look,” D.M. replied: “One had a CDA student loan of 10k and making 700k in China. Makes no sense, there are many other anomalies.”
In interviews, D.M. told The Bureau he waited “patiently for a year” after reporting his Chinese-income mortgage concerns to HSBC Canada managers, before concluding the bank’s response was insufficient.
“This has been going on for seven years and no one spoke up,” he said. “In my first meeting last year, they asked me a lot of questions, like why didn’t you use the normal channels? But I had no faith in the normal channels.”
“Many bank staff were obviously involved,” D.M. alleged. “It was not one or two employees turning the blind eye but the entire system, someone verifying those fake offer letters and pay stubs, or their bank statements from China.”
D.M. said his concerns also included HSBC Canada’s proposed sale to RBC, which was announced in 2022, about six months after D.M. ‘s April 2022 internal complaint. The sale was approved in December 2023 by Canada’s deputy Prime Minister Chrystia Freeland.
Christian Leuprecht, among other experts interviewed for this story, agreed that D.M.’s allegations of widespread Chinese-income frauds at HSBC Canada could raise questions about whether Freeland, Canada’s finance minister, had knowledge of mortgage lending investigations inside HSBC when she approved the sale.
Freeland directed RBC to “establish a new Global Banking Hub in Vancouver,” and “maintain Mandarin and Cantonese banking services at HSBC branch locations,” a Department of Finance statement says.
Ultimately, D.M. says he chose to share his story with Canadian citizens partly because he felt pressured to erase evidence from his whistleblower complaint emails.
A June 2023 email from the bank’s personnel department says “we hereby demand that you immediately and permanently delete any and all HSBC information on any personal email accounts.”
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