The RCMP’s Greater Toronto Area Financial Crime team has arrested and charged six people in an alleged fraudulent investment scheme. The RCMP has reported that the alleged fraud worked by enticing investors to purchase business tax losses valued far in excess of their investments. The companies used by the accused included: Integrated Business Concepts (IBC), Synergy Group 2000, Cason Global Wealth Association (CGWA) and IBCA 2009.
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It is alleged that many of the tax losses were fraudulent because the companies involved with the six accused did not have agreements for their losses to be transferred over to third parties. In other instances, the businesses that provided a large portion of the losses were controlled by the accused. It is also alleged by the RCMP that these losses were fabricated.
The RCMP have estimated that the value of this alleged fraud may exceed $200 million dollars. It is unclear from the reporting whether steps have been taken to freeze the assets of the companies and individuals involved in this alleged fraud. This is a critical step to preserve the recovery for individual victims. Other avenues of recovery are tracing the funds received by the individual perpetrators in order to seek recovery from those who have received ill-gotten gains as well as pursuing any professional advisors whether they be lawyers or accountants who may have had a hand in the scheme.