Hundreds defrauded in door-to-door Ontario scam, Canada-wide warrants issued

Ontario Provincial Police say they have uncovered a door-to-door sales fraud operation that victimized more than 200 older and vulnerable residents in Ontario.

Members of Ontario’s serious fraud office have arrested two individuals, and Canada-wide arrest warrants have been issued for three others.

More than 200 victims were identified throughout the province.

“It is evident this fraud has been financially, emotionally, and physically devastating for many victims across the province. Victims of this fraud were provided support from investigators and SFO victim support services throughout the investigation,” a statement from police reads.

Provincial police in Collingwood first started looking into the door-to-door fraud in the summer of 2021. The case was later referred to the serious fraud office in February of 2022.

The investigation, dubbed Project Nettle, alleges that salespeople were sent to the homes of older adults and vulnerable people.

Once there, police say victims unknowingly entered into home service or renovation agreements at exorbitant prices.

“Many victims believed they were getting services/installations and renovations for free through government grants or rebates,” police say.

Organizers of this fraud then used the fake agreements to register notice of security interests, similar to liens against victims’ homes, without their knowledge, according to police. These agreements were paid off to the benefit of the fraud organizers using fraudulent, high-interest mortgages against the victims’ homes.

Det. Const. Erin Fraser says in many cases, the victims only became aware of the lien or mortgage on their home when they went to sell it.

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“The victimization in this fraud was devastating. For one … there were many victims across Ontario, but also individually; not only were there liens and mortgages on their homes, but they felt vulnerable, and it was affecting many of them physically and emotionally as well as the finances,” she says.

Police say this fraud often left the victims in financial peril and, in some cases, forced the victims to sell their homes.

Fraser says that because people often don’t know when a Notice of Security Interest has been placed on their homes, there are likely other victims.

She says it’s essential to check in on elderly or vulnerable friends or family members and talk to them about the scam and what to look out for.

“They might not want to bother you by asking you about these things, and they don’t want to seem like they can’t take care of this on their own. But it’s so important to take care of each other,” Fraser says.

She warns that people should not answer the door for strangers or any unknown numbers and not share personal information like financial statements or bills with others.

“Don’t sign anything. A reputable company will let you consider signing something before they leave. If you’re feeling pressured in any way, take a step back and let this one go, it could be fraudulent,” Fraser warns.

People can check for a notice of security interest against their home by purchasing a copy of their parcel register through the Ontario Land Registry Access.

The newly enacted Homeowner Protection Act deems all consumer NOSIs registered before June 6, 2024, expired. It allows homeowners to have them removed by registering an application to delete an expired NOSI through a lawyer.

The Consumer Protection Act also allows people to withdraw from a contract within one year and get a full refund if a business or individual has misrepresented a product or service, police warn.

Officers also warn that products or services sold door-to-door have a ‘cooling off period’ that allows people to cancel an agreement within 10 days.

A list of arrested and wanted persons, their municipality of residence and their respective charges is available through the Ontario Provincial Police.

All of the suspects face multiple charges related to fraud over $5,000, among other charges.

The three men charged range in age from 23 to 33.

Investigators are asking anyone with additional information regarding this fraud to call the dedicated tip line at 1 (833) 941-5865 or email OPP.Nettle@opp.ca.