Prominent Richmond realtor disputes forgery allegations
A prominent Richmond realtor has been accused in a lawsuit by her former employer, New Coast Realty, of “forging and concealing ” changes made to 11 contracts, and causing the firm to lose listings contracts and commissions.
But in her response to the lawsuit filed in B.C. Supreme Court, Wendy Yang alleges “it was common practice” for realtors at New Coast to write their manager’s name on documents submitted to the Real Estate Board of Greater Vancouver, and that she left the firm because she refused to take part in what she believed were “unethical and unlawful practices.”
The case is set for trial in early 2018, and none of the allegations has been proven in court.
New Coast alleges in its claim that in January 2016, “unbeknownst to New Coast … Yang was planning her departure to a competitor real estate agency, Metro Edge.”
According to the claim, New Coast learned in early February 2016 that “Ms. Yang had forged the name of New Coast’s managing broker” on 11 amended listing contracts and Yang “surreptitiously submitted them to the Real Estate Board of Greater Vancouver, thereby purporting to terminate each of the listing contracts.”
Yang switched her licence to a new firm, Metro Edge, and re-listed nine of the contracts with Metro Edge as the listing brokerage, New Coast’s claim says.
The claim also states that without New Coast’s knowledge, Yang included, in the terms for two contracts, language that reduced New Coast’s commissions.
It also alleges Yang entered into four new listing agreements for Metro Edge while still under contract with New Coast.
New Coast complained to the real estate board and the board terminated each of the contracts re-listed by Yang, according to the claim.
“As a result of Ms. Yang’s fraudulent conduct and breaches,” including “forging and concealing” the 11 amended listings, New Coast has lost commissions of $231,000 and future commissions, and is seeking damages over the alleged losses, the claim states. The claim argues “an award of general damages is inadequate to punish Ms. Yang for conduct that was dishonest, scandalous, outrageous and high-handed,” and therefore New Coast should be awarded punitive damages.
But Yang ’s response alleges she decided to leave the brokerage because her manager at the time, Ze Yu Wu, pressured her into “unethical and unlawful phantom assignments and other unlawful and unethical practices which she refused to be involved in.”
Phantom assignments refers to a controversial practice also known as shadow-flipping, in which sales contracts for properties are transferred by brokers multiple times before a sale closes.
The response says that as a result of Yang ’s refusal to take part in unethical business, Wu took steps to ensure further business stopped coming to Yang. And so, she “took marketing steps at her cost to obtain listings.”
Yang ’s response says she joined Metro Edge Realty after she was “terminated” at New Coast, and “the only listings the defendant (Yang) dealt with were listings she had obtained as a result of her own efforts.”
Yang’s response to allegations that she forged amended listing contracts states that “it was common practice and accepted by (New Coast) for team leaders to sign the broker’s name on administrative communications with the Real Estate Board of Greater Vancouver.”
Yang said by phone that she could not answer Postmedia’s questions and directed all questions to her lawyer, Wayne Ryan.
Ryan informed Postmedia that he does represent Yang, but said that because he represented a seller in one of the listings involved, he cannot comment on the case.
“I would be in a conflict of interest and it would be inappropriate to comment,” Ryan said.
Yang ’s response also alleges that her former manager, Wu, “was found by the Real Estate Council (of B.C.) to counsel new Realtors to disregard the interests of their clients,” and as a result, the regulator excluded Wu from day-to-day operations at New Coast, but Wu remained owner.
An April 2016 statement from the council says after an investigation, it met with New Coast’s owner and imposed new licence conditions including, “appointment of a managing broker approved in advance by the council.” As well, training sessions for New Coast realtors were to be conducted only by the approved managing broker, the council said.
Yang is among 12 realtors that New Coast refused to pay commissions “for closings that occurred before or after they were terminated,” Yang ’s response alleges.
Real estate board spokesman Mark Moldowan was asked to comment specifically on the case, and on whether alleged forgery of listing documents filed with the board could be a systemic concern in Vancouver real estate. Moldowan said the board has regulations covering fraud, but it could not confirm whether it is investigating in this case.
“The real estate council would have jurisdiction over cases like this as well and, as the regulatory watchdog for the industry, would have first right to review the case,” Moldowan said.
Maureen Coleman, professional standards adviser for the council, said her organization is aware of the B.C. Supreme Court case, but she could not comment further.
Postmedia contacted New Coast’s management to ask for a comment on the case and Yang’s claims, but has not yet received a response.
Postmedia reached Yousef Farzam-Kia, a managing broker with the company. Farzam-Kia said he could not comment because he had no knowledge of Yang’s case. He said New Coast’s management has been informed of Postmedia’s questions for this story.