[HN Gopher] A man who stole a hotel
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       A man who stole a hotel
        
       Author : chat
       Score  : 91 points
       Date   : 2021-04-27 05:38 UTC (17 hours ago)
        
 (HTM) web link (www.capitaldaily.ca)
 (TXT) w3m dump (www.capitaldaily.ca)
        
       | tartoran wrote:
       | I coould bet Durkin is a narcissist or a psychopath, more likely
       | the former. I've been stung by such a specimen and the amount of
       | lies, deception and pain is extremelty unpleasant. Many times the
       | only way to move on is to swallow the loss and forget about it.
       | They have a way of continually causing pain after a long time,
       | turning people against you even if you have plenty of evidence
       | against them.
       | 
       | These type of people are simply unfixable, they're in a continual
       | search for targets for their deceptions.
       | 
       | In my case, the speciment left the US leaving behind his family
       | and a 6 year old daughter to escape justice.
        
       | v77 wrote:
       | British Columbia has long been the scam capital of North America
       | (well, maybe tied with Miami). It brings a tear to my eye to see
       | it all grown up from the days of ripping off seniors for junior
       | mining company shares on the old VSE to its current status as
       | international money laundering hub for the entire Pacific Rim.
        
         | pjmorris wrote:
         | I'd be happy to compare notes, but as a Florida native and
         | long-time Dade-Broward resident, I find it hard to believe that
         | Miami isn't the scam capital of the Americas.
        
           | faster wrote:
           | I thought it was Naples FL, tied with Newport Beach, CA.
           | Every financial offer I've gotten with one of those places in
           | the return address has been extremely scammy looking, and I
           | lost a pile of money to a Newport Beach scammer in the 80s.
           | 
           | But then Georgia allows loan terms that are not allowed in
           | other states, so predatory lenders like to be based in GA,
           | IIRC. I think Florida is second in allowing non-consumer-
           | friendly loan terms though.
        
       | mattm wrote:
       | FYI The author of the story did an AMA on Reddit if interested in
       | some more background
       | https://www.reddit.com/r/VancouverIsland/comments/mwcdta/i_i...
        
       | asdfasgasdgasdg wrote:
       | Now this was a crazy story. What should a savvy businessperson do
       | to avoid this type of situation happening to them? Presumably
       | this would have all been avoided by requiring up-front payment,
       | in escrow, before allowing someone to become physically involved
       | in the business? A background check would probably not have gone
       | amiss either. Any other tips from more experienced folks on here?
        
         | mattm wrote:
         | If someone says they'll come up with the money by X date and
         | they don't, maybe you give them one more chance but that's it.
         | Then the deal is off.
         | 
         | It's such a heartbreaking story. It seems the conman caught the
         | owners in a perfect storm where they were somewhat desperate to
         | sell based on:
         | 
         | - 2 previous sale attempts had fallen through
         | 
         | - there was a throwaway line I read somewhere that they were
         | dealing with some personal issues. Perhaps those issues took
         | away their focus
         | 
         | - the wife was an overly trustful person
         | 
         | - it seems like they just wanted to retire and enjoy the rest
         | of their lives
         | 
         | I think the main lesson is that no matter how much you want a
         | deal to work out, you still need to be willing to walk away. A
         | bad deal can be much, much worse than no deal at all.
         | 
         | A similar story is how John Spano bought the NHL team the New
         | York Islanders despite having no money. There's a great ESPN 30
         | for 30 episode about it. https://www.businessinsider.com/how-
         | john-spano-bought-the-is...
        
           | dwohnitmok wrote:
           | > you still need to be willing to walk away. A bad deal can
           | be much, much worse than no deal at all.
           | 
           | Yes yes yes. For almost all things in life you need to be
           | able (and therefore on some level to be prepared) to walk
           | away. And if you can't, you should set as a top priority
           | creating the ability to do so (and don't let on to the other
           | side that you can't walk away).
           | 
           | If the other side of the deal picks up on the fact you can't
           | or won't walk away and is malicious, they will savage you.
        
         | lotsofpulp wrote:
         | > Presumably this would have all been avoided by requiring up-
         | front payment, in escrow, before allowing someone to become
         | physically involved in the business?
         | 
         | Yes, following the normal protocols and using lawyers and not
         | using their gut feelings or caring about the buyer's story
         | would have prevented this.
         | 
         | The guy was broadcasting that he was not a desirable buyer,
         | scam or no scam:
         | 
         | > Thirteen times he and Gregory requested pushing back the
         | closing date, saying they'd be prepared to close "tomorrow" or
         | "next week" or "next month" or in "the first weeks of the new
         | year."
         | 
         | I searched the article for "earnest money" and didn't see any
         | mention of it, which means the sellers were engaging with this
         | buyer without the most basic of real estate transaction
         | protections for the seller:
         | 
         | https://www.investopedia.com/terms/e/earnest-money.asp
        
           | faster wrote:
           | I don't know anything about the normal real estate closing
           | process in Canada, but I learned (through a word game, of all
           | things) that there are types of real estate fraud in some
           | countries that are impossible (without explicit seller
           | cooperation) in others.
           | https://en.wikipedia.org/wiki/Gazumping
        
             | motohagiography wrote:
             | Gazumping seems unethical, but it's also a quirk of
             | language and agreeability. The "gazundering," aspect of
             | this scheme is interesting from a negotiations perspective.
             | If anyone accuses you of it, I'd recommend rejecting the
             | accusation as bullying, and always refer any bid to looking
             | at it when it's on paper.
             | 
             | If you have bought a car and agreed on the price, only to
             | find there is another 30% of "fees," insurance, financing
             | costs, freight, and random whatevers, or taken a minimum
             | wage job only to be charged a uniform rental fee, you have
             | been taken by a similar scheme. There are people who do
             | this kind of scamming full time as their living, we call
             | them "salespeople."
             | 
             | If a seller starts the discussion by advertising an offer
             | to sell for $100, and the buyer agrees to continue the
             | conversation at that anchor price, and then after getting
             | details about the goods, the buyer comes back with a lower
             | offer of $50, that's a pretty transparent negotiation.
             | Naming this "gazundering," seems like a ploy to discourage
             | beginners from negotiating.
             | 
             | It is the seller's responsibility to line up other offers,
             | and it's on them to manage the opportunity cost of any
             | discussions. Using deception to get leverage on the seller
             | by using a fake offer that causes the seller to let go of
             | their other opportunities would be a more accurate
             | description of the unethical aspect of "gazundering," but
             | even then, high stakes negotiations can become a kind of
             | warfare.
        
             | quietbritishjim wrote:
             | Gazumping is certainly annoying (OK maybe that's a bit too
             | mild) but it's definitely nothing like "real estate fraud".
             | 
             | In the UK, a small property sale goes through a process
             | roughly like this (skipping quite a few steps):
             | 
             | 1. Buyer and seller informally agree to buy/sell a property
             | for a given price.
             | 
             | 2. Lawyers for both parties get to work, mostly on the
             | buyers side to check everything is OK (e.g. structurally
             | sound, all necessary planning and building regs in place).
             | 
             | 3. Once everything is ready to go, both parties sign the
             | contract - this is called "exchange" (because each side
             | signs the contract separately then send their signed
             | version to the other).
             | 
             | 4. The contract typically (not always) stipulates that the
             | transfer of money and ownership won't take place until
             | about a week later - that time is called "completion".
             | 
             | If either party tried to pull out between 3 and 4 then this
             | is a serious problem - they essentially can't, or if they
             | do then it is breach of contract. But gazumping is where
             | the seller pulls out before 3 (because they've gotten a
             | better offer from another buyer before then). At that point
             | the buyer has probably shelled out some legal fees but
             | hasn't paid anything to the seller - I don't see how you
             | could consider this fraud. Indeed the buyer could just as
             | well pull out (e.g. because the checks reveals something
             | about the house they don't like) or try to renegotiate the
             | price. That's all above board before the contract is
             | signed.
             | 
             | Edit: More specifically, I don't see how you could come up
             | with a mechanism to prevent it. Should you lock in the sale
             | price at step 1, before you do any checks? What if (as the
             | buyer) the house is not in the condition it initially
             | appeared to be? What if (as the seller) the buyer seems to
             | be dragging their heels and delaying the transaction? You
             | need a way to pull out of the transaction before the
             | contract is signed.
        
               | gambiting wrote:
               | Just FYI, because you specifically said UK not England -
               | not all of UK works like this. In Scotland you sign a
               | legally binding contract to buy the property at step 1.
               | You can only get out of it if the house is found to be in
               | poorer condition than advertised through inspections and
               | solicitor work. So if you are trying to sell a house,
               | sign a contract with someone at step 1, then someone
               | offers you better money between 2 and 3 - tough luck,
               | it's _really_ hard to get out of it, you pretty much have
               | to sell at the price you agreed to.
        
               | toyg wrote:
               | You should probably mention that process and penalties
               | are substantially different between England and Scotland.
               | Property is one of the areas where legislation and
               | customs differ a lot between UK countries.
        
         | motohagiography wrote:
         | It wasn't clear to me whether ther Philips' engaged their
         | lawyer to look over the orginal new share agreement, who should
         | have advised them of the risks. The most savvy business people
         | I know treat every deal as an objective 3rd party thing and
         | have clear personal boundaries.
         | 
         | The mother of the current Prime Minister being involved could
         | have been an alarm bell as she has a vulnerable history, and
         | fits the archetype of the sort of high profile / low judgment
         | person a scammer like that would leverage. It's almost always
         | the kooky ones who let the vampires in.
         | 
         | There is also a low-level scam where "investors," find
         | distressed businesses, take on enough shares to get access the
         | bank accounts, and loot the accounts, sometimes after managing
         | to get a bank loan for whatever "improvements" they were going
         | to make. It's not small, as it's tens or hundreds of thousands
         | of dollars, and it works because when they're done, the victims
         | can't even afford the lawyers to sue them for it.
        
         | mattbee wrote:
         | When you want out of a business, the pull of someone who's
         | promising to get you out is very powerful. I can see how it
         | would sap your energy for due diligence.
         | 
         | When I sold my business, even when the deal was going smoothly
         | and I had a partner & advisors to lean on, it's still agonising
         | and you desperately want little bumps and delays to just go
         | away.
        
         | hahla wrote:
         | Pushing back the closing date for $182k is a red flag, then
         | they proceeded to agree pushing it back a total of 13 times.
        
       | dspig wrote:
       | Why does the article sometimes repeat a sentence or two of itself
       | as a quote?
        
         | gnatman wrote:
         | It's a magazine typesetting / layout thing called a "pull
         | quote"
        
           | MrBuddyCasino wrote:
           | What is this supposed to achieve? I'm always annoyed by
           | those.
        
             | cainxinth wrote:
             | You have to understand that the average reader doesn't read
             | the whole article. Most just skim and take in the
             | headlines, subheadings, pull quotes, and pictures.
             | 
             | But, that's not the stated rationale for a pull quote,
             | which is technically meant just to highlight an important
             | piece of information from the article.
        
             | quietbritishjim wrote:
             | They work quite well in a physical magazine. They're much
             | larger than the surrounding text, and catch your eye as you
             | flick through the pages. They're chosen to pique your
             | interest so that you end up reading the whole article.
             | 
             | On a website, where you only see these pull quotes if
             | you've already made a decision to read through the article,
             | and they're not even any bigger than the regular text, they
             | make no sense at all.
        
               | jameswst wrote:
               | Thank you for this feedback! I'm the editor at Capital
               | Daily, and I struggled with the decision whether or not
               | to use pull quotes. I agree that our site's pull-quote
               | format is too small, so they look weird, but I did want
               | to give people who are scanning a chance to drop in in
               | different places. I guess that wasn't achieved here.
        
               | klyrs wrote:
               | It's a pet peeve of mine. In a single-column format
               | they're redundant and distractingly out of context.
        
             | pwg wrote:
             | https://en.wikipedia.org/wiki/Pull_quote:
             | 
             | "a pull quote ... is a key phrase, quotation, or excerpt
             | ... serving to entice readers into the article or to
             | highlight a key topic ... They can add visual interest to
             | text-heavy pages with few images or illustrations"
        
       | toyg wrote:
       | Sometimes I honestly wish I could be a bit like this Durkin guy.
       | I feel anxious when I owe a grand or two, I can't imagine how I'd
       | feel taking over property with the owners' own money. But in
       | practice, as it says in the story, crime does pay; this guy
       | likely stashed away a few millions in the Caymans and will retire
       | sipping daiquiri, while the honest families getting conned will
       | keep struggling to the end of their days
        
       | Nextgrid wrote:
       | I'd bet good money that if this conman was involved in any sort
       | of drug-related business the cops would come out the same day to
       | arrest and deport him.
        
         | UseStrict wrote:
         | Pretty much every Canadian police force is useless. They exist
         | seemingly only to harass indigenous peoples and tribes. I don't
         | think I've ever seen them solve or pursue a crime that wasn't
         | blatantly obvious.
        
         | shill4humanity wrote:
         | Or just an anonymous tip that Julian Assange was renting a room
         | in that hotel. Surrounded by tanks by the end of the hour.
        
       | nobody5050 wrote:
       | This was a wild ride from beginning to end
        
         | kleiba wrote:
         | Sure is. I just wish it was all fiction, it would make a
         | fantastic suspense novel. Knowing that it actually happened,
         | and about the people who fell prey to these fraudsters, having
         | lost everything they built up during their lives, is heart
         | breaking.
        
           | crocsarecool wrote:
           | The description of the hotel with the fireplaces and Japanese
           | baths sounded so beautiful. I forgot for a moment that this
           | was a story of the hotel getting stolen and thought whoever
           | buys it would be well set up to have a lovely business. I
           | feel so bad for the owners on the cusp of retirement then
           | dragged through hell when they should be enjoying themselves.
        
           | beckman466 wrote:
           | > Sure is. I just wish it was all fiction, it would make a
           | fantastic suspense novel.
           | 
           | Yeah it was super gripping just like a John Grisham novel.
           | Thanks to this great writer for doing justice to such a
           | tragic story.
        
       | bb101 wrote:
       | We visited Sooke Harbour House back in 2016. It was a unique and
       | charming little hotel with beautiful cottage gardens. I have
       | lovely memories of taking breakfast on the terrace, surrounded by
       | nasturtiums of all colours and having little hummingbirds
       | hovering around a fountain within hands reach. One of our best
       | meals in North America was in its cosy understated restaurant,
       | introducing us to Okanagan Pinot.
       | 
       | Reading about its demise is devastating -- its beauty was a
       | credit to both Frederique and Sinclair. If the new owners have
       | ripped out the trees and the vegetable beds, I doubt it will
       | retain the same magic. A special place we can never visit again,
       | sadly.
        
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       (page generated 2021-04-27 23:02 UTC)