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