A former events director at Toronto’s MaRS Discovery District, regarded as “one of the world’s largest urban innovation hubs,” has been arrested and charged in connection to an alleged fraud scheme of nearly $1 million.
Toronto police say 61-year-old Allen Gelberg used his position as the Director of the Collaboration Centre at MaRS to defraud his employer, as well as service providers such as catering and equipment rental companies of over $970,000.
A statement release by MaRS on Thursday confirms the accused was involved “in apparent fraudulent activities” and diverted funds for his “personal use.”
“As soon as external sources brought the improprieties to the attention of MaRS’ senior management, MaRS took immediate and appropriate action to suspend the employee and initiate an investigation,” the statement read.
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MaRS said a forensic investigation was launched to locate and identify the “misappropriated funds” and a report was forwarded to police.
Gelberg of Thornhill, Ont. was arrested on Wednesday and faces 11 charges including eight counts of fraud over $5,000, defraud the public over $5,000, possession of proceeds of crime and laundering proceeds of crime.
He was scheduled to appear in court on Wednesday.
According to Gelberg’s LinkedIn page, he was employed at MaRS from 2005 to 2014. Officials at MaRS confirms he is no longer an employee.
He is currently the executive director for Canadian Friends of Ariel University. The institution is based in Israel.
An AboutMe webpage indicates Gelberg was a director of sales and marketing at Vintage Hotels based in the Niagara Region from 2000 to 2005.
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Toronto police say the accused is also the registered owner of the sole proprietorship known as Rediscover Niagara.
Authorities are encouraging anyone in the catering, events or tourism industry who had contact or business with Gelberg to come forward.
They are told to call Det. Const. Warren Bulmer at 416-808-7344, warren.bulmer@torontopolice.on.ca, or Crime Stoppers anonymously at 416-222-TIPS (8477).