Tenants living in properties owned by a fugitive may be protected from eviction if the bank or a new landlord takes over, according to a legal expert.
Gareth West, 45, is wanted by U. S. authorities for allegedly operating a grandparent scam call center in Montreal, cheating American seniors out of over $21 million US. He has been on the run since an arrest warrant was issued for him in February.
CBC News has previously reported that West owns two apartment buildings-one in St. Thomas and another in London. He purchased an additional building at 232 Elm Street in St. Thomas back in March 2022; however, this three-story walk-up was ordered closed by the fire department last November due to serious fire code violations stemming from poor renovations. It was foreclosed that same month before the bank took control in January, as indicated by property records.
“When the bank takes over, it’s actually good news because if the landlord wasn’t paying for utilities then the bank steps up to cover it and things can get fixed,” said Elena Dempsey, a lawyer at Elgin-Oxford Legal Clinic in St. Thomas.
Residents at West’s rentals located at 14 Holland Street in St. Thomas and 308 Egerton Street in London report dealing with uncollected garbage piling up, power outages, and no hot water. They’ve voiced their worries about what happens next without their landlord around.
Both cities have stated that services have been restored at these apartments and they’re working with the respective mortgage lenders.
What comes next?
The next phase would involve the mortgage lender-possibly the bank-taking ownership of the properties until they’re sold to someone else. However, tenants are safeguarded against eviction under the Residential Tenancies Act.
“The only way for the bank to seize the property is if the landlord defaults on their mortgage,” Dempsey explained.
“There have been instances where landlords fail to pay utilities or can’t keep up with property payments leading to banks taking over; this isn’t unusual.”
With West evading capture, lenders can obtain an order from Superior Court permitting them to take ownership, but this process might stretch out for several months.
Residents will then need to verify they are legitimate tenants before receiving something called a Notice of Attornment; after that point, their rent would go directly to the bank starting from when they receive notice.
Wendy Nichols is one tenant at a St. Thomas property owned by alleged fugitive Gareth West who says she’s had to take on responsibilities and costs associated with maintaining her rental while her landlord faces charges related to running a grandparent scam network that cheated seniors out of millions.(Isha Bhargava/CBC)
Having the bank as their new landlord could actually benefit those residing at these buildings because it could ensure service stability,” noted Dempsey. If another individual or company buys the building afterward, they become responsible as landlords but cannot evict tenants without proper cause,” she added.
“Under this act you can’t just tell tenants ‘Get out because I’m your new owner,’” Dempsey pointed out. “If someone new takes over and one of those tenants does something that warrants eviction-then yes-they could potentially be evicted just like anywhere else.”
The landlord might apply for permission to demolish or convert usage of the building; however, they must give tenants at least 120 days’ notice-and tenants can contest such actions through Landlord and Tenant Board-which is yet another lengthy process.
Municipalities’ limits
The authority of municipalities regarding private properties is limited according to St. Thomas Mayor Joe Preston. Nonetheless, both his city and London have issued bylaw notices allowing them some power when addressing violations such as trash collection issues along with water and electricity problems.
“Not having trash picked up likely doesn’t count as enough grounds for property standards enforcement but once we see water or electricity being shut off-that’s when we can step into action post-disconnect,” said Preston regarding how they handle bills which would then be charged back onto landlords’ taxes later.”
![Garbage overflow]()
Garbage can be seen overflowing at 308 Egerton Street in London where residents claim their trash hasn’t been collected since April.(Alessio Donnini/CBC)
