Charges laid in two bankruptcy fraud investigations

TORONTO, June 23, 2016 /CNW/ - The Integrated Bankruptcy Enforcement Unit comprised of the Royal Canadian Mounted Police (RCMP) and the Office of the Superintendent of Bankruptcy (OSB), has charged two individuals under separate investigations with offences under the Criminal Code (CC) and the Bankruptcy and Insolvency Act (BIA).

Essam Habo KAKOS, age 50, of Brampton, will appear at Old City Hall, Ontario Court of Justice in Toronto on June 24th, 2016, where he will face charges in relation to fraud and the abuse of the bankruptcy process.

It is alleged that prior to declaring bankruptcy Mr. KAKOS transferred over $150,000 through the issuance of cheques and bank drafts to family members and also utilized over $41,000 of the credit on his credit cards to purchase automobiles that were subsequently registered in the name of a family member.  Mr. KAKOS is alleged to have obtained three credit cards from Canadian financial institutions by submitting credit applications that contained fraudulent employment and income information.

Mr. KAKOS 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. At the time of his bankruptcy, Mr. KAKOS reported having assets of $5,582 and over $43,402 in liabilities. Subsequent to this the proofs of claims from the creditors show that Mr. Kakos had liabilities of $260,995.60.

Mr. KAKOS 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).
  • 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).

 

In July 2015, the Integrated Bankruptcy Unit began their investigation of Kameran FARHAN MEHMED, a 39 year old male from Toronto.  At the time of his bankruptcy, Mr. FARHAN MEHMED reported having $5,900 in assets and approximately $130,000 in liabilities.  It is alleged that Mr. FARHAN MEHMED obtained credit by providing false income information on applications and then depleting his accounts with the intention of defrauding his creditors.  Mr. FARHAN MEHMED is also alleged to have committed offences under the Bankruptcy and Insolvency Act. On April 28, 2016 charges were laid against Mr. FARHAN MEHMED at Toronto Old City Hall Court and a warrant for his arrest was issued as his whereabouts is unknown.

Mr. FARHAN MEHMED has been charged with:

  • Fraud over $5,000 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).
  • Make a false entry or knowingly makes a material omission in a statement or accounting contrary to the Bankruptcy and Insolvency Act (BIA).
  • Failure to comply with duties of a bankrupt contrary to the Bankruptcy and Insolvency Act (BIA).

 

Bankruptcy is a legal process that can provide relief to honest but unfortunate individuals who are unable to pay their debts. Unfortunately, there are individuals who choose to abuse the system and commit fraudulent activity. When this happens, the Office of the Superintendent of Bankruptcy and the RCMP work diligently to identify individuals who fail to comply with their obligations.

Since January 2014, the Integrated Bankruptcy Enforcement Unit has charged 29 individuals and four corporations with 146 offences under the Bankruptcy and Insolvency Act and 116 offences under the Criminal Code encompassing liabilities of approximately $106 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.

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

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

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