An investigation by the RCMP’s London Financial Crime Unit has resulted in charges against a 72-year-old Toronto man whom police allege was involved in a scheme that bilked members of the public out of more than $6 million.
The charges are the result of a year-long probe that began in April 2017 into securities-based frauds involving Canadian victims, the RCMP said Friday. Investigators say they received a tip from a London, Ont., resident who alerted them to an “elaborate scheme” to defraud $1 million based on phony securities and option trades.
Police allege the accused used aliases and forged sales receipts to lure victims into investing more of their money into bogus trades. Some of those victim’s names were later given to a second group of individuals posing as asset-recovery specialists.
“These victims were enticed to send even more money in a futile attempt to recover their funds lost in the fraudulent scheme,” the Mounties say.
In the end, police identified at least 130 Canadians who fell victim to the scheme, each of whom lost thousands of dollars to the fake futures trades. Ten of the victims reside in southwestern Ontario.
Ronald Abrams, 72, of Toronto, is charged with fraud over $5,000 and possession of proceeds of crime. He is scheduled to appear in a London court on June 18.
“This is one of the bigger fraud schemes,” said Cpl. Louise Savard, media relations officer for the RCMP’s Ontario Division.
“Some people are afraid to come forward. They’re embarrassed,” she said. “But we advise people that anyone who receives any unsolicited invitations to invest in futures or other securities that they should exercise caution.”
If anyone suspects that an investment opportunity is fraudulent, they should contact the Canadian Anti-Fraud Centre, she said.
The RCMP says its investigation is ongoing with assistance from the Financial Transactions and Reports Analysis Centre of Canada.
— With files from Matthew Trevithick and Jaclyn Carbone