RCMP Charge Two in International Investment Scam
TORONTO, July 31, 2014 /CNW/ - The RCMP's Greater Toronto Area (GTA) Financial Crime Unit, in partnership with the Barrie Police Service, has charged two Canadians after over 160 Canadian investors lost $1.5 million dollars in an alleged investment scam.
The investigation began after a complaint was received through the Saskatoon Police Service that many investors located primarily in Saskatchewan, Manitoba, Ontario and Alberta had been defrauded in what appeared to be an investment scam operating from a business location in Barrie, Ontario. The investigation revealed that between 2006 and 2008, over 160 Canadian investors were enticed to invest funds through BHF Waste Management Limited Partnership (BHF) managed by Douglas Scott and Claude Taillefer for the purchase of a vermiculite mine or mining rights in Dillon, Montana, United States (US). Investors were led to believe that money was being sent to Dillon, Montana, when in fact it was funneled to two offshore Bahamian bank accounts. The investors were led to believe that they had bought the mining rights directly from a business located in Dillon, Montana, when in fact they were paying an inflated price to a shell company with the same name that was registered in the country of St. Kitts and Nevis.
During this investigation, the RCMP executed search warrants and production orders in Ontario and Manitoba as well as initiated the judicial execution of MLATs (Mutual Legal Assistance Treaties) in the United States, St. Kitts and Nevis and the Bahamas. After analyzing the documentation obtained and speaking to numerous witnesses, the RCMP determined that Douglas Scott and Claude Taillefer were behind this investment scheme and had control of the two offshore Bahamian bank accounts for this shell company. This evidence was contrary to what Scott and Taillefer had declared to investors, auditors and other directors.
The investigation has shown that several individuals belonged to, participated in and assisted in crimes being committed and played a part in the investment scam. Several individuals benefitted from the funds through the laundering of the proceeds or through being paid wages from investor funds.
The following individuals have been charged with offences under the Criminal Code (CC) in relation to this investment scam:
- Douglas Stewart McLeish Scott, age 66, last known addresses of Toronto, Ontario and Cranbrook, British Columbia
- Claude Gerard Taillefer, age 63, last known address of Shanty Bay, Ontario.
The offences are as follows:
- Fraud (over) $5000 contrary to section 380(1)(a) CC
- Fraud by False Pretense contrary to section 362(1)(a) CC
- Conspiracy to Commit Fraud contrary to section 465(1)(c) CC
- Money Laundering contrary to section 462.31(2)(a) CC
- Possession of Property Obtained by Crime contrary to section 354(1) CC
- Participate in Criminal Organization contrary to section 467.11(1) CC
Douglas Scott and Claude Taillefer have warrants for their arrest and they are actively sought by the RCMP. For photos of the accused please visit the Ontario RCMP Newsroom.
"The RCMP GTA Financial Crime is committed to bring to justice those who seek to defraud investors through elaborate schemes," stated Inspector Ann Koenig - RCMP GTA Financial Crime. "Ensuring Canada's economic integrity continues to be a priority for the RCMP."
The RCMP GTA Financial Crime would like to thank, the Barrie Police Service, Saskatoon Police Service, the Royal Bahamas Police Force, the United States Federal Bureau of Investigation (FBI) and Internal Revenue Service (IRS), the International Assistance Group (IAG - Ottawa) and RCMP International Liaison Officers responsible for Miami, Washington, Bahamas and St. Kitts and Nevis for their valuable contributions to this investigation.
Anyone with information in regards to the location of the wanted accused persons are asked to contact your local police, the Ontario RCMP at 1-800-387-0020 or anonymously through Crime Stoppers at 1-800-222-8477.
SOURCE Royal Canadian Mounted PoliceFor further information:
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"O" Division (Ontario)