MAJOR FRAUD INVESTIGATION RESULTS IN 64 CHARGES

TORONTO, Sept. 3 /CNW/ - Following a complicated, two year investigation with Industry Canada's collaboration, the RCMP has charged 13 Toronto area men with a total of 64 fraud related charges.  Investigators from the GTA Commercial Crime Section have determined that the total value of this fraud was in excess of $4 million dollars.

The charges include offences under the Canada Small Business Financing Act and fraud charges under the Criminal Code.  It is alleged that the individuals charged furnished false documents, reports or information, and failed to use the loan funds for the purpose stated on the loan application.  The irregularities were initially noticed by Industry Canada employees.

Twenty-two (22) charges were laid against 38-year-old David SCENNA of no fixed address, including 19 charges under the Canada Small Business Financing Act and three charges of fraud under the Criminal Code. The other 12 individuals are all facing charges under the Canada Small Business Financing Act and one charge of fraud under the Criminal Code.

Investigators believe the individuals applied for loans by submitting fraudulent or forged documents for equipment and upgrades to leased property that were never completed.  It is believed that these transactions took place between 2001 and 2008.  The anomalies were discovered by Industry Canada when a number of claims were received from lenders in 2007 and 2008. Industry Canada then turned the matter over to the RCMP for a criminal investigation in 2008.

During the investigation, search warrants were executed on 50 bank accounts to identify specific transactions these individuals were believed to have actioned.  Thousands of documents were examined for evidence that police believe provide a paper trail for each fraud.

"The RCMP's Commercial Crime Sections deal with a wide range of white-collar crimes such as currency counterfeiting, commercial fraud, mass marketing fraud, fraudulent bankruptcies and insolvencies, and cases of corruption and theft in which the government has been victimized." stated Inspector Rick Whattam, the officer in charge of the GTA Commercial Crime Section.  "The role of the Commercial Crime Program is also to reduce the impact of commercial crime on Canadians and preserve the integrity of government programs and the economy through enforcement, public education, and crime prevention."

The 1st appearance for the accused individuals is scheduled for September 16th, 2010 at the A Grenville & William Davis Courthouse in Brampton, Ontario.  If convicted, penalties range from a fine of up to $500,000.00 or up to 5 years in prison, or both, under the Canada Small Business Financing Act and up to 10 years in prison under the Criminal Code.

For further information:

Sgt. Marc LaPorte
RCMP Media Relation
"O" Division (Ontario)
Office: [phone]
Cell: [phone]