Unlicensed real estate brokers facing fraud charges in Kelowna, B.C.

Two unlicensed real estate brokers, who served jail time in Alberta for conducting unlicensed real estate deals, are facing criminal charges in British Columbia for allegedly defrauding two Kelowna residents out of thousands of dollars.

Derek Johnson and Kevin Kumar are each charged with two counts of fraud over $5,000 for activities in the Kelowna area in 2015 and 2016.

The pair have a lengthy history of conducting phoney real estate deals in Alberta and were sentenced to two months in prison in 2016 for ignoring a court order to stop brokering in real estate.

Johnson has been described by an Alberta judge as "a scoundrel" who preys on vulnerable people.

Johnson and Kumar are believed to have moved to British Columbia sometime around 2015.

Investor loses $12,500

Kelowna resident Shelli Cohen says she came into contact with Johnson and Kumar after she responded to advertisements placed on Kijiji.ca in 2015.

"They basically called it creative real estate or creative financing, in which their goal was to find people who were selling their homes privately and connect them with buyers that could not qualify for conventional mortgages and then they would use investors that would facilitate a transaction," Cohen said.

Cohen said at first she trained with Johnson and Kumar and eventually invested $12,500 in a home purchase brokered by the pair.

Cohen began to worry about her investment after she took a call from a man who informed her of the real estate brokers' past dealings.

She tried to get her money out of the deal without interest but says they both refused.

Cohen said she then learned the home sale her money was supposed to be invested in went ahead, allegedly, without Johnson or Kumar's involvement.

"As you can imagine, I was very distraught about it," she said.  "I blame myself for falling for this."

Cohen claims the pair quit returning her phone calls and text messages after she confronted them.

She went to the RCMP which opened an investigation.

B.C. real estate regulator put out warning

In 2016, the provincial agency in B.C. that regulates real estate put out a warning about unlicensed real estate brokers, highlighting several websites used by the pair.

At the time, Johnson told CBC News he was changing careers because of pressure from regulators in both Alberta and British Columbia.

"I feel frustrated, angry, confused, harassed," he said.

"My name has been run through the mud ... I don't feel too good about it."

Charged with defrauding investors

This August, Johnson and Kumar were charged with defrauding Cohen and another Kelowna area man.

None of the allegations have been proven in court.

When contacted, Johnson's lawyer said his client will likely plead not guilty to the charges.

CBC News was not able to reach Kevin Kumar, and it is not certain where he is residing.

Their next court date is in November.