TORONTO, June 19, 2014 /CNW/ - The RCMP's Greater Toronto Area (GTA) Financial Crime unit has charged 11 Ontarians after over 150 international investors lost $4.4 million dollars in an alleged elaborate investment scam.
The RCMP began the investigation after receiving information from the Ontario Securities Commission (OSC) that many investors had been defrauded in what appeared to be an investment scam. The RCMP investigation revealed that between 2003 and 2006, over 150 investors from the United States (US) and the United Kingdom (UK) were enticed to invest by purchasing shares of an apparent biomedical company trading on the Over the Counter Bulletin Board (OTCBB), led by Ivan Cavric. The company was National Detection Clinics Limited (NDCL) which was formerly known as Discovery Biosciences and became TGC Ventures Inc.. Investors were told that NDCL were going to open up clinics after they had developed an early stage breast cancer infra-red detection system that had received approval from the U.S. Food and Drug Administration (FDA).
After a review of the financial transactions and through further investigation, it is alleged that Cavric's organization set out to deceive investors. The medical technology had not been approved and none of the investors' money went towards opening, purchasing or implementing any clinics or equipment.
The investigation has shown that numerous individuals belonged to, participated in and assisted in crimes being committed and played a part in the Cavric organization. All individuals benefitted from the funds through laundering the proceeds or through being paid wages from investor funds.
The following people have been charged with various offences under the Criminal Code in relation to this investment scam:
- Ivan Cavric, age 54 of Welland, Ontario
- Americo Derosa, age 58 of Niagara on the Lake, Ontario
- Elwood Henkle, age 64, last known address Pefferlaw, Ontario
- Sharon Finestone, age 65 of Jacksons Point, Ontario
- Joanne Woodcroft, age 49 of Niagara Falls, Ontario
- Terri Costiff, age 42 of Thorold, Ontario
- Joane Laprise, age 53 of Welland, Ontario
- Katherine Bassi, age 64 of Welland, Ontario
- Sandra Landsman, age 71 last known address Pefferlaw, Ontario
- Frederick Kimber, age 55 of Hagersville, Ontario
- Tabitha Dempsey, age 31 of Niagara Falls, Ontario
The various offences are as follows:
- Fraud Over $5000, s. 380(1)(a) CC
- Laundering proceeds of crime, s. 462.31(1)(a) CC
- Possession of proceeds of crime value exceeds $5000, s. 355(a) CC
- Commission of offence for criminal organization (fraud), s. 467.12(1) CC
- Commission of offence for criminal organization (money laundering), s. 467.12(1) CC
Americo DEROSA, Elwood HENKLE, also known as, Alan LANDSMAN or Peter JOHANSON and Sandra LANDSMAN have warrants for their arrest and they are actively being sought by the RCMP.
"The RCMP is committed to bringing to justice those who seek to defraud investors through elaborate schemes", stated Inspector Ann Koenig, RCMP GTA Financial Crime Unit. "Ensuring Canada's Economic Integrity continues to be a priority for the RCMP".
The RCMP would like to thank the Ontario Securities Commission, the United States Securities and Exchange Commission and Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) for their valuable contribution to this investigation.
Anyone with information in regards to the location of the wanted accused persons are asked to contact your local police, the Ontario RCMP at 1-800-387-0020 or anonymously through Crime Stoppers at 1-800-222-8477.
SOURCE: Royal Canadian Mounted Police
For further information:
For media inquiries contact:
Ontario RCMP Media Relations
Insp. A. Koenig
RCMP GTA Financial Crime