RCMP Charge 5 People in Alleged $75 Million Bankructy Fraud

TORONTO, Jan. 30, 2015 /CNW/ - The Royal Canadian Mounted Police (RCMP) GTA Financial Crime Section charged five former executives of SEAQUEST CORPORATION, SEAQUEST CAPITAL CORPORATION, (SEAQUEST) and its related companies with Criminal Code as well as Bankruptcy and Insolvency offences.

In November 2011, SEAQUEST initiated bankruptcy proceedings in order to obtain creditor protection from their investors as SEAQUEST claimed they were unable to pay their creditors after amassing a debt of $75 million owed to approximately 70 creditors.

In February of 2012, the Office of the Superintendent of Bankruptcy (OSB) referred the matter to the RCMP who launched an investigation into SEAQUEST's activities. It is alleged that SEAQUEST collected $92 million dollars from investors with the promise rates of returns up to 36%. However, it is also alleged that the money was not invested but instead put into a Ponzi scheme, where new investor funds were used to pay old investors. The previous investors were then convinced to re-invest those returns.

As a result of this investigation, the following individuals have been charged under the Criminal Code (CC) with Fraud Over $5,000.00, Money Laundering, and Commission of offence for Criminal Organization:

• David Burns HOLDEN (52) of Richmond Hill
• Edmond Chin Ho SO (37) of Toronto

Additionally David HOLDEN have been charged with 3 Bankruptcy and Insolvency Act charges.

Their next court date is on March 2nd 2015 at Old City Hall, and that David Holden is scheduled to appear today for a Show Cause.

"It's important for the public to know that before investing in any financial venture, they should do their due diligence and that the higher the expected rate of return usually means a higher risk of fraud" said Inspector Gairy of the RCMP GTA Financial Crime Section.

The RCMP,  the OSB, and in particular the OSB's Special Investigation Units will continue to combine their efforts to investigate allegations of criminal wrongdoing related to bankruptcy and insolvency matters in order to protect the integrity of the insolvency system in Canada.

Website: RCMP in Ontario
Twitter: @RCMPONT
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SOURCE Royal Canadian Mounted Police

For media inquiries contact: Cst. Jean Juneau, RCMP Media Relations, "O" Division (Ontario), [phone]