Charges laid in bankruptcy fraud investigation

TORONTO, May 4, 2016 /CNW/ - The Integrated Bankruptcy Enforcement Unit comprised of the Royal Canadian Mounted Police (RCMP) and the Office of the Superintendent of Bankruptcy (OSB), have charged a Toronto resident with offences under the Criminal Code (CC) and the Bankruptcy and Insolvency Act (BIA).

Sanmugarajah NADARAJAH, 56, will appear at Old City Hall, Ontario Court of Justice in Toronto on May 6th 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. NADARAJAH obtained credit cards from Canadian financial institutions by submitting fraudulent income information on his credit application.  During the same general time period, Mr. NADARAJAH allegedly opened a chequing account in a Canadian financial institution. The account contained almost no funds and remained dormant. He then wrote a series of cheques to creditors from this account in order to inflate the credit available to him. Prior to the cheques being returned NSF, Mr. NADARAJAH utilized and depleted the inflated credit for large purchases and cash advances both domestically and overseas.

Additionally, Mr. NADARAJAH is alleged to have failed to answer fully and truthfully at an Examination by an official of the Office of the Superintendent of Bankruptcy and to knowingly make a material omission in completing his Statement of Affairs by not disclosing the disposal of real property.

Mr. NADARAJAH has been charged with:

  • Fraud over $5,000, contrary to the Criminal Code,
  • Two counts of obtain Credit by Fraud, contrary to the Criminal Code,
  • Conspiracy to Commit Fraud, contrary to the Criminal Code,
  • Refuse or neglect to answer fully and truthfully, contrary to the Bankruptcy and Insolvency Act (BIA),
  • Knowingly Make a Material Omission or False Statement, 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 26 individuals and four corporations with 137 offences under the Bankruptcy and Insolvency Act and 104 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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