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 Kugathasan ARUNAGIRI, a 38 year old male from Scarborough, Ontario with offences under the Criminal Code (CC) and Bankruptcy and Insolvency Act (BIA). The allegations relate to fraud and the abuse of the bankruptcy process.

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

  • Section 362(1)(b) CC, Obtain Credit by Fraud
  • Section 198(1)(a) BIA, Fraudulent Disposition of Property
  • 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 May 2013 after the RCMP/OSB SIU received information of possible wrongdoing by Mr. ARUNAGIRI.  It is alleged Mr. ARUNAGIRI fraudulently used his credit sources beyond the credit limit granted to him by the creditor institutions prior to filing for bankruptcy on May 10, 2012.  This was accomplished by issuing "non-sufficient funds" (NSF) payment cheques to credit sources which temporarily restored the credit limit thus enabling Mr. ARUNAGIRI to make large jewelry purchases in Singapore, withdraw funds as cash, and transfer funds to associates.  No genuine payments were made to the accounts and the debtor declared bankruptcy.  Fifteen creditor institutions were victims of this fraud and are owed over $400,000.

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

During this investigation, the Integrated Bankruptcy Enforcement Unit was assisted by the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC), who provided disclosures which contributed to the success of this investigation.

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

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


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