Charges laid in bankruptcy fraud investigation

TORONTO, Dec. 10, 2015 /CNW/ - The Integrated Bankruptcy Enforcement Unit comprised of the Royal Canadian Mounted Police (RCMP) – Greater Toronto Area (GTA) Financial Crime Section and the Ontario Region Special Investigation Unit (SIU) of the Office of the Superintendent of Bankruptcy (OSB), have charged a Campbellville resident with offences under the Criminal Code (CC) and the Bankruptcy and Insolvency Act (BIA).

Calin A. LAWRYNOWICZ, 45, will appear at Old City Hall, Ontario Court of Justice in Toronto on December 11th where he will face charges in relation to fraud and the abuse of the bankruptcy process.

Mr. LAWRYNOWICZ was a principal in businesses related to law, real estate and financial consultation that he used to service his clients.  Through his operation of these businesses he became the defendant in several law suits involving millions of dollars in claims against him which prompted him to declare bankruptcy.

The bankruptcy system relies on the bankrupt to cooperate fully and to properly perform duties required by the Bankruptcy and Insolvency Act for the purpose of realizing the value of their assets for the general benefit of their creditors.  In return, the bankrupt is absolved of certain debts.  It is alleged that Mr. LAWRYNOWICZ failed in this regard.  At the time of his bankruptcy, Mr. LAWRYNOWICZ reported having assets of $175,000 and over $4 Million in liabilities.

Mr. LAWRYNOWICZ is alleged to have disposed of an asset prior to declaring bankruptcy thereby depriving his creditors of the cash benefit of that asset.  It is also alleged that he neglected or refused to answer questions fully and truthfully during his examination under oath by one of his creditors.

Mr. LAWRYNOWICZ has been charged with:

  •  Fraud over $5,000 contrary to the Criminal Code (CC).
  •  Fraudulent disposal of property contrary to the Bankruptcy and Insolvency Act (BIA).
  •  Refuse or neglect to answer fully and truthfully all proper questions at an examination contrary to the Bankruptcy and Insolvency Act (BIA).
  • Failure to comply with duties of a bankrupt contrary to the Bankruptcy and Insolvency Act (BIA).

The bankruptcy system is intended for the honest but unfortunate debtor.  However, there are instances where individuals abuse the system by failing to comply with their duties under the BIA and/or engaging in fraudulent criminal activities.  Offences are identified through detection programs or through complaints from creditors, the trustee-in-bankruptcy or the public.

Since January 2014, the Integrated Bankruptcy Enforcement Unit has charged 22 individuals and four corporations with 124 offences under the Bankruptcy and Insolvency Act and 92 offences under the Criminal Code encompassing liabilities of approximately $105 million.

Should members of the public have any information related to bankruptcy fraud schemes they are urged to contact either the Ontario RCMP at 1-800-387-0020 or the OSB at 1-877-376-9902 or anonymously through Crime Stoppers at 1-800-222-8477.

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

SOURCE Royal Canadian Mounted Police

For further information: For media inquiries contact: Sgt. Penny HERMANN, RCMP Media Relations, RCMP "O" Division, 905-876-9571, http://www.rcmp-grc.gc.ca/on/index-eng.htm

RELATED LINKS
http://www.rcmp-grc.gc.ca/

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