Mortgage Scam

A disgraced Mississauga lawyer was charged with fraud Wednesday in connection with a a mortgage scheme that allegedly resulted in losses of at least $12 million.

Mariano “Mario” Mazzucco, was disbarred three months ago over the scheme.

Peel Regional Police arrested Mazzucco, 61, of Kuhl Ave., Toronto, on Wednesday, accusing him of using his heritage to develop the trust of more than 40 mostly Italian seniors — plus 10 banks — allegedly sharing their investments with shady partners.

Det. Mike MacDougall alleged Mazzucco arranged mortgage loans and bank refinancing after “organized crime” members recruited him to launder money. He is charged with fraud over $5,000, defrauding the public, possessing crime proceeds, laundering crime proceeds, plus criminal breach of trust.
The investigation into other suspects continues, with police not revealing any known crime group.

MacDougall alleged Mazzucco developed a “Ponzi scheme” around 1989, preparing but not registering mortgage documents shown to clients now aged 55 to 85, who then received cheques based on other victim’s investments. The money stopped coming after his law office was shut down.
“Some of them have been left destitute,” the detective said, predicting none — if any — funds are expected to be recovered.

“The majority are senior citizens who have lost most of their life savings,” MacDougall said. “They worked hard all their lives, paid off mortgages and wanted to have something to leave their children and grandchildren.”

He and a partner began working on the case two years ago, after victims contacted police.

The former Mazzucco law office on Dundas St. E. now houses an insurance office.


Some victims have been offered up to $50,000 in compensation, said MacDougall, who added others are “too upset and have withdrawn, wanting nothing to do with it any more ... and one man in his 80s has died.”

MacDougall said the law society did not alert police 11 years ago, when it suspended Mazzucco’s licence to practice law for 30 months after ruling him guilty of misappropriating client trust funds.

“They handled the matter internally,” the detective said.

Mazzucco makes his first court appearance Thursday morning, when the Crown will seek to have him remanded in custody.

Anyone with information is asked to call 905-453-2121, Ext. 3335.