The Accidental Path to Mortgage Fraud: A Case Study of Luigi Savone

Mortgage fraud is a serious and pervasive issue within the real estate industry, often involving complex schemes and high stakes. This investigative case study delves into the journey of Luigi Savone, a lawyer from Ontario, Canada, who found himself embroiled in a fraudulent transaction, initially claiming ignorance before facing and contesting the charges at length.

Introduction to the Case

In the early days of 2014, Luigi Savone, a real estate lawyer based in Ontario, Canada, was found guilty of mortgage fraud. However, Savone's defense was based on a claim of innocence by ignorance. He argued that he was unaware of the fraudulent activities occurring in his transactions, despite checking all the accounts repeatedly. His case was initially dismissed, but the situation only escalated from there.

Initial Appeal and Further Investigation

The case did not end with the initial verdict. Savone proceeded to file an appeal. This first appeal was considered, but before any decision could be made, the matter was forwarded for further investigation. In 2018, the new investigation found Savone guilty once again, this time by participating in or knowingly assisting in fraudulent or dishonest conduct by his vendor clients. The investigation uncovered approximately 30 more fraudulent transactions, adding to the original 12 found in 2014.

Further Appeals and Legal Obstacles

Once again, Savone filed a second appeal. This time, he claimed a breach in the legal procedure and argued that the focus should be on the original 12 transactions rather than the newer 18 added. The appeal was allowed, and the case continued to drag on. In 2019, Savone made another claim, this time asserting that he was clinically depressed and unable to attend the hearings necessary to proceed with the appeal.

Given his depression, Savone was granted permission to submit written submissions instead of appearing in person. It is important to note that throughout the whole ordeal, Savone continued to work at his law firm, despite being at the center of a fraud investigation.

The Evolving Narrative and Legal Leniency

The core of the case has seen some changes in its narrative and legal proceedings:

Depression and Legal Leniency: Savone's claims of depression have added a layer of sympathy to his case, further complicating the legal proceedings. Despite his mental health issues, he continues to work, and his practice remains open. Decrease in Reported Fraud: The legal records have indicated a reduction in the number of fraudulent transactions for which Savone was previously found guilty. This could be due to legal tactics or the result of further investigation. Ambassadorial Connections: An interesting aspect of this case is the connection between Riccardo Savone, Luigi's brother, and his role as the Ambassador of Canada to Brazil. While this does not directly influence the legal process, it is noteworthy as it adds to the complexity of the case.

Conclusion

The case of Luigi Savone remains a contentious and high-profile investigation. It raises questions about the effectiveness of the appeals process and the legal treatment of lawyers who engage in fraudulent activities. While Savone continues to work and even seeks to close the case based on its length, the true outcome remains to be seen.

Further Reading

2014 ONLSTH 166 CanLII

2018 ONLSTH 39 CanLII

2019 ONLSTA 15 CanLII