Charges laid in bankruptcy fraud investigation

TORONTO, Sept. 24, 2014 /CNW/ - The Integrated Bankruptcy Enforcement Unit, comprised of the Royal Canadian Mounted Police (RCMP) Greater Toronto Area Financial Crime Section and the Ontario Region Special Investigation Unit of the Office of the Superintendent of Bankruptcy (OSB SIU), charged Baskaran SHANMUGARAJAH, a 41 year old male from Vaughan, Ontario with offences under the Criminal Code (CC) and the Bankruptcy and Insolvency Act (BIA). The allegations relate to fraud and the abuse of the bankruptcy process.

As a result of this investigation, SHANMUGARAJAH has been charged with the following offences:

  • Section 380(1)(a) CC, Fraud Over $5,000
  • Section 198(1)(b) BIA, Refuse or Neglect to Answer Fully and Truthfully
  • Section 198(1)(c) BIA, Omission in a Statement

The investigation began in April 2013 after the RCMP/OSB SIU received information of possible wrongdoing by Mr. SHANMUGARAJAH.  It is alleged Mr. SHANMUGARAJAH fraudulently used his credit sources beyond the credit limit granted to him by the creditor institutions prior to filing for bankruptcy on March 21, 2012.  This was accomplished by issuing "non-sufficient funds" (NSF) payment cheques to credit sources which temporarily restored the credit limit thus enabling Mr. SHANMUGARAJAH to make more purchases and withdraw funds as cash.  No genuine payments were made to the accounts and the debtor declared bankruptcy.  Nine creditor institutions were victims of this fraud and are owed over $200,000.

The matter is scheduled for first appearance at the Ontario Court of Justice - Old City Hall in Toronto on September 26, 2014.

The RCMP and the OSB SIUs will continue to combine their efforts to investigate allegations of criminal wrongdoing related to bankruptcy and insolvency matters in order to protect the integrity of the insolvency system in Canada.

SOURCE: Royal Canadian Mounted Police

For further information:

S/Sgt. Peter Koersvelt,
Acting RCMP Media Relations officer
RCMP "O" Division
519-995-8372

http://www.rcmp-grc.gc.ca/on/index-eng.htm

Website:   RCMP in Ontario
Twitter:      @RCMPONT
Facebook:  RCMP.Ontario
YouTube:  RCMPGRCPOLICE


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