Investigation into cyber‑enabled wage subsidy fraud leads to charges

OTTAWA, ON, May 8, 2026 /CNW/ - Royal Canadian Mounted Police (RCMP) Federal Policing – Central Region has laid charges following an investigation into a series of cyberattacks targeting the Government of Canada's Canada Emergency Wage Subsidy (CEWS) program.

The CEWS program, administered by the Canada Revenue Agency (CRA), was introduced to support Canadian employers during the COVID-19 pandemic.

The investigation revealed a coordinated scheme in which suspects fraudulently obtained CEWS funds by exploiting compromised online credentials belonging to legitimate Canadian businesses.

In January 2021, the RCMP's International Anticorruption Team within the Sensitive and International Investigations (SII) Unit, in partnership with the CRA's Criminal Investigations Division, launched a joint-force operation to investigate cyber intrusions affecting the CEWS program. Investigators determined that the suspects used a compromised "Represent a Client" (RepID) credential to submit unauthorized CEWS applications on behalf of legitimate businesses whose CRA My Business Account (MyBA) access had been unlawfully obtained.

Investigators further determined that the affected businesses were unaware their accounts had been accessed and used to submit wage subsidy applications. Fraudulent claims linked to this scheme totalled approximately $5.7 million.

The RCMP would like to acknowledge the assistance from the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) during the investigation.

As a result of the investigation, Mohammed Ehteshamul Huq (50) and Robert Arthur Otto (79) have each been charged under the Criminal Code with the following offences:

• Fraud over $5,000 (section 380(1)(a))
• Laundering proceeds of crime (section 462.31(1)(a))
• Possession of identity information for the purpose of committing an indictable offence (section 402.2(1))
• Possession of property obtained by crime (section 354(1)(a))

The accused are scheduled to appear in court in Brampton, Ontario, on June 4^th, 2026.

"Cyber enabled fraud undermines public trust in government programs designed to support Canadians during times of crisis. This investigation highlights the importance of strong collaboration between the RCMP and the Canada Revenue Agency to identify, disrupt and hold accountable those who exploit emergency financial assistance programs."

-  Inspector Guy Michel Nkili, Officer in Charge of RCMP Central Region International Anticorruption Team

"The Canada Revenue Agency takes fraud against government programs extremely seriously. Those who deliberately exploit emergency measures, designed to support Canadian workers and businesses, undermine public trust and will be pursued to the fullest extent of the law. We will continue to work closely with law enforcement partners to detect, prevent, and disrupt schemes that target government systems and public funds."

-  Harry Gill, Assistant Commissioner and Agency Security Officer of the CRA's Security Branch

Fast Facts

• The RCMP Sensitive and International Investigations (SII) unit, focuses its expertise on sensitive and international investigations threatening Canada's interests such as those directed towards the institutions of government, public officials, the integrity of the Crown, or otherwise imperil Canada's political, economic, and social integrity.
• The RCMP's core values guide our daily work. All employees are expected to model these values in their service. This investigation demonstrates our commitment to serving with excellence and leveraging technology and expertise to keep our communities safe.

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SOURCE Royal Canadian Mounted Police - Central Region

Contact Information: RCMP Central Region (Ontario), Communications & Media Relations, Email: [email protected]