Ontario couple loses C$280K in a Mexico condo scam — how to avoid the same real estate trap

Thompson noticed some details that piqued her interest: a number of properties listed on the site had been repossessed by banks and were priced 30% below market value, and the business was registered in the state of Florida — leading her to believe it had some credibility.

“So when I started to look at the individual properties, I thought, hey, this sounds like a really good opportunity, and I wonder who this guy is,” she told CBC.

After multiple conversations with Robinson, Thompson flew to Playa del Carmen with her sister in October, 2024, to discuss opportunities. At that time, they were introduced to Robinson’s partner, Jacqueline Herrera Herrera, an allegedly well-known lawyer and realtor in the area.

CBC News confirmed that Herrera and Robinson were co-owners of another company called Xen Investments, registered in Mexico.

Over the course of their meeting, Herrera proposed Thompson purchase a one-bedroom condo for sale in a Playa del Carmen complex called Taak Maya. Thompson agreed, and while she saw the building, she never had access to the unit, as Robinson stated he did not have the key.

Despite not seeing the unit herself, Thompson sent two payment instalments in November and December of 2024, totalling C$170,000 to an HSBC bank account in Mexico affiliated with Xen Investments, CBC reported. She also signed a purchase agreement signed by Robinson.

After jumping through all the necessary hoops, Thompson never saw the inside of her unit.

A string of deceit

Thompson waited for keys to her new unit from late 2024 to early last year, and chose to return to Playa del Carmen to take possession. But Robinson and Herrera said they could not give her the keys yet, as they were still waiting on final pieces to come together.

Springboarding off the delay, Robinson chose to pitch a different deal to Thompson, alleging that Herrera had found an even better place for their C$170,000 investment: a large seven-condo purchase in the same building.

According to a WhatsApp voice message, Thompson was told the couple could purchase the seven units for US$100,000 (~C$141,000) each and then flip them for US$250,000 (~C$351,837.50) — a profit margin of 100%.

To fund the deal, Thompson’s partner, Brown, invested C$110,000 of his retirement savings to an HSBC account owned by Xen Investments and entered into a “share purchase agreement” with the company.

But the couple hit a supposed snag. Robinson passed along a message from Herrera that one of the investors in the condo-flipping project had died and that more funds were needed for the deal to go ahead.

However, nothing came of the deal to date — the couple has not seen a dime of their investment money. In a WhatsApp message to Thompson, Robinson alleged that his partner was in complete control of the couple’s funds and she took the funds out herself. CBC News could not reach her for comment.

“I’m just overwhelmed by it all,” Thompson told CBC.

“We’ll have to work until we die,” added Brown.

Where the case stands now

The couple hired a local lawyer that filed a criminal complaint. However, the case seemed to be in limbo until CBC News brought the issue up with Mexican President Claudia Sheinbaum during a morning press conference in June.

“We’ll look at this particular case that’s [been] raised, but we can say that there is legal certainty, and when there is a problem, for sure, we deal with it,” Sheinbaum told the outlet.

On the heels of that meeting, Quintana Roo Governor Mara Lezama’s administration moved forward with the case. The investigation is currently led by Rogelio Estrada Heleria, who is a state deputy prosecutor for the central district.

CBC News reached out to Robinson for an interview, but he turned down the request.

In addition to the claim against Robinson and Herrera from Thompson and Brown, Robinson also has a criminal complaint against Herrera, as he claimed he was “duped” as well.

Common real estate frauds facing Canadian buyers in Mexico

Thompson and Brown’s experience with real estate fraud in Mexico isn’t unique. According to estimates from the Mexican Association of Real Estate Professionals, the nation’s real estate sector loses approximately 600 million pesos (~$48 million CDN) annually to scams.

While each fraudster may have their own playbook, there are some common scams that Canadians seeking to invest should be cognizant of.

One of the most common is a duplicate property sale, when the same property is sold to multiple buyers. This occurs when a bad actor advertises a property they do not legally own — or attempts to sell a property whose ownership is disputed — and the buyers only find out they have been duped after their money is gone.

Other ways scams can occur with property transfers are through fraudulent documents being presented. Fake purchase agreements or even forged signatures can give the illusion of credibility, and leverage that illusion for large cash deposits upfront. Foreign buyers not familiar with Spanish can also be particularly susceptible to this kind of ploy when documents are presented in Spanish only — and when scammers apply pressure to sign.

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