A Conservative MP is among hundreds named in a mortgage fraud lawsuit filed by BMO.
Calgary Northeast MP Devinder Shory and his professional corporation are listed as one of the defendants in the suit, which alleges losses of 70 million dollars.
Legal documents obtained by CTV News say Shory was a practicing lawyer at the time of the alleged scam.
Shory is named by BMO as the lawyer listed in several transactions in which the bank claims it was defrauded by close to 300 thousand dollars.
The Conservative back-bencher says he is aware of the allegations but hasn't been served any legal papers.
In a written statement Shory says "I want to state that I have not yet been served with a statement of claim. When I am, I will defend myself vigourously against these accusations. I have done nothing wrong."
The Prime Minister's Office points out the case is civil not criminal and no other comment will be made as the matter before the courts.
BMO accuses 14 different groups including realtors, lawyers, brokers, appraisers, and even its own employees in the case.
It claims defendants purchased the worst homes in the best neighbourhoods.
A middleman was then allegedly paid to apply for a mortgage with forged information.
The claim alleges the value of the home was then inflated and the bank unknowingly approved the falsely inflated mortgage with some of the alleged fraudsters pocketing the difference.
In many cases, the loan was defaulted on and the bank lost the difference between what the home was worth and what it was mortgaged for.
All of the homes involved in the suit are in Alberta.
A local forensic accountant tells CTV News that the province's housing boom and laws surrounding assumable mortgages made Alberta an ideal place to run the alleged scheme.
No criminal charges have been laid in the case but the RCMP is now looking into the file.
"We're looking into it right now on a very preliminary basis to determine if there's enough information to go on and see whether there's some type of criminal act here," said Sgt. Patrick Webb.
BMO says none of its customers were affected and the potential losses have already been written off.
The company hopes to reclaim 30 million dollars in the civil suit.
It is not yet clear if other banks may also be involved.
