Desjardins has granted millions of dollars in mortgages to Pauline Cauchefer, a young businesswoman accused of systematic renovations. After the revelations of Press, the Movement says, however, that it wants to “carry out checks” on this funding, then “act accordingly”.
We explained on November 25 and 26 how this darling of real estate investor clubs is denounced for its practices, described as “wild” by the representative of a housing committee in Hochelaga-Maisonneuve.
Pauline Cauchefer, 24, says she has acquired 100 apartments. To get her hands on it, the young businesswoman took out many private loans, but also traditional financing from four Desjardins caisses. Of the 12 buildings that it or its companies own, eight are encumbered with a mortgage in favor of the Mouvement.
In total, Desjardins granted at least 5.55 million in mortgage financing to Pauline Cauchefer and her associates, according to our research in the land register. Press could not identify any other large financial institution among its lenders.
“Further checks”
The Movement ensures that it was ignorant of the stratagems used by the investor to renovate and empty its buildings of their tenants, before installing new ones. “In light of recent information about Mme Cauchefer, we are going to carry out more thorough checks and act accordingly, ”said Chantal Corbeil, spokesperson.
She did not say clearly whether Desjardins could recall some of the loans granted. “We will look at the different possibilities, but nothing is defined yet. ”
Pauline Cauchefer refused to grant an interview to Press. In partial responses to our questions by email, however, she explained that she was doing business with Desjardins because “they are a very good lender, flexible and quick in their loans”.
Counter letters
In the case of some of the buildings that the Movement has financed, the name of Pauline Cauchefer or her companies does not even appear in the land register, however, Chantal Corbeil points out.
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The Desjardins Group says it was unaware that Pauline Cauchefer owned some of the buildings it financed with millions.
This is the case for the two properties it owns with partners in Hochelaga-Maisonneuve. As explained Press, the investor acquired 49% and 50% of the shares in these buildings through confidential “counter-letters”. These secret contracts come to specify the real will of the parties, which differs from what the act of purchase mentions. They are used in an “extremely rare” way, assured Press Benoît Rivest, from the Center of Expertise in Notarial Law of the Chamber of Notaries.
The Movement says it was unaware of the existence of these counter-letters. “Desjardins provides financing to borrowers who are clearly identifiable,” says Chantal Corbeil. The use of nominees is not a recommended practice. ”
Today, partners of Pauline Cauchefer through these secret contracts have filed lawsuits for her to sell them her shares. They accuse him of “embezzlement” and of not having taken charge of the renovations and relations with the tenants, as agreed.
In his responses to Press, Desjardins recognizes that these partners have already suffered from the situation. “Caution is in order. We don’t want them to suffer more, ”writes Chantal Corbeil.
In addition, the mortgage guarantee deeds signed by Desjardins stipulate that its clients must inform it of any lease termination. “The rental income considered is current and not projected rental income,” adds the spokesperson.
In other words, the Movement ensures that it does not grant loans on the basis of rents that would explode after major renovations. “Access to housing is an important issue for Desjardins. ”