Charges laid in bankruptcy fraud investigation

TORONTO, Feb. 25, 2016 /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 Whitby resident with offences under the Criminal Code (CC) and the Bankruptcy and Insolvency Act (BIA).

Premkumar THURAIRAJAH, 41, will appear at Old City Hall, Ontario Court of Justice in Toronto on February 26th, 2016, where he will face charges in relation to fraud and the abuse of the bankruptcy process.

It is alleged that prior to applying for bankruptcy Mr. THURAIRAJAH obtained credit cards from numerous Canadian financial institutions by submitting credit applications that contained fraudulent employment and income information.  Mr THURAIRAJAH is alleged to have submitted a forged Canada Revenue Agency Notice of Assessment to one of the financial institutions that showed an annual income that was significantly higher than what Mr THURAIRAJAH actually earned.

Mr. THURAIRAJAH allegedly wrote and deposited to his credit card accounts, over 30 cheques totalling over $275,000.00, all of which were subsequently returned due to non-sufficient funds.  It is also alleged that Mr. THURAIRAJAH utilized his credit cards to obtain over $120,000.00 in cash advances over a 1 month time period.

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. THURAIRAJAH failed in this regard.  At the time of his bankruptcy, Mr. THURAIRAJAH reported having assets of $6,481.00 and over $270,000.00 in liabilities.

Mr. THURAIRAJAH is alleged to have disposed of assets before declaring bankruptcy thereby depriving his creditors of the cash benefit of the assets and neglected or refused to answer questions fully and truthfully during his examination by the Official Receiver.

Mr. THURAIRAJAH has been charged with:

  •  Fraud over $5,000 contrary to the Criminal Code (CC).
  •  Three counts of obtain credit by false pretence contrary to the Criminal Code (CC).
  •  Use a forged document contrary to the Criminal Code (CC).
  •  Refuse or neglect to answer fully and truthfully all proper questions at an examination contrary to the Bankruptcy and Insolvency Act (BIA).
  • Fraudulent disposition of the bankrupt's property 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 24 individuals and four corporations with 133 offences under the Bankruptcy and Insolvency Act and 97 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,


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