Fraud Chronicles Roundup – Jan 29, 2015

New credit card phishing scam hits Canada – CBC.ca

http://news.google.com Mon, 26 Jan 2015 05:32:27 GMT

CBC.ca

Daniel Williams, a senior call-taker from Canada’s anti-fraud centre, says the scam begins with a phone call between 5 a.m. and 7:30 a.m.. The caller claims to be from the victims’ bank and says a credit card was used without authorization the previous evening.

Read more …

In this scam, the caller will claim to be from your bank. It seems that people are more likely to answer questions in a sleepy state than later in the day. According to Daniel Williams of the anti-fraud centre, this scam has been very successful.

If you’ve been victimized by this scam, the anti-fraud centre recommends contacting the police.

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Canadian billionaire at centre of bizarre Mafia and fraud accusations after … – National Post

http://news.google.com Sat, 24 Jan 2015 02:07:49 GMT

Canadian billionaire Michael DeGroote is at the centre of bizarre accusations of Mafia exploitation, death threats and fraud. The 81-year-old self-made billionaire was once awarded the Order of Canada, and has donated large amounts of money to McMaster University.

DeGroote is now embroiled in a series of civil lawsuits filed in Ontario relating to a US$112-million investment in Caribbean casinos. A Toronto lawyer acting for DeGroote spoke on his behalf, saying that in hindsight his client “regrets and is embarrassed by his decisions to have made loans in relation to this project.”

Read more …

More details about alleged wrongdoings relating to the casinos appeared in Dominican Today Thursday: Paper trail: US$100M fraud links Canadian brothers: Listin – Dominican Today

http://news.google.com Thu, 29 Jan 2015 12:26:45 GMT

Paper trail: US$100M fraud links Canadian brothers:

Santo Domingo.- Pregnant women laid off, millions in arrears to Social Security affecting hundreds of people and unpaid back wages after its business were shuttered are some of …

Read more …

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ICBC’s most bizarre insurance scams of 2014 – CBC.ca

http://news.google.com Fri, 30 Jan 2015 14:57:14 GMT

The Insurance Corporation of British Columbia has released a list of the most interesting fraud scams detected by its investigators during 2014, including cases involving failed impersonation, airbag betrayal, and a time travelling conspiracy. …

Read more …

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U.S. charges Canadian man with trading fraud – Edmonton Sun

http://news.google.com Tue, 13 Jan 2015 22:56:05 GMT

Canadian man becomes first person charged with stock fraud allegedly committed using “layering.” 

NEW YORK – U.S. authorities opened a new chapter in policing high-speed stock trading on Tuesday when they charged a Canadian man with fraud for manipulating stock prices through a process called “layering.”

Canadian Aleksandr Milrud is alleged by the U.S. SEC and federal prosecutors to have “used a network of overseas traders and brokerage accounts” for placing a series of fake orders which were then canceled before being filled to temporarily manipulate prices – just long enough to take advantage of new prices with their own “real” trades.

Read more …

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I’ll close this week’s fraud case roundup with an article from the Globe and Mail on how mortgage free seniors can become victims of Mortgage fraud
Estimated damages of real estate fraud in Canada range from $400 million to $1.5 billion annually.

Title fraud – how mortgage-free seniors can become a target – The Globe and Mail

http://news.google.com Tue, 20 Jan 2015 10:03:36 GMT

Title fraud – how mortgage-free seniors can become a target.

The Globe and Mail: According to the Financial Consumer Agency of Canada, title fraud can happen in one of two ways. With identity theft, fraudsters can use stolen or fake identification or doc …

Read more …

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As always, you’re encouraged to let me know about current fraud and corruption news by sending me a note through the Contact form on TheFraudChronicles.com, or by putting a link to interesting fraud cases in a comment on this blog.
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Author: V. G. Oltmann

V. G. Oltmann, MBA, CPA, CGA, CFI - Professor, Vancouver Island University 2002 - 2013 - Board Member, Association of Certified Forensic Investigators of Canada (ACFI): 2010-2013 - LinkedIn Profile: http://ca.linkedin.com/in/vgoltmann/

27 thoughts on “Fraud Chronicles Roundup – Jan 29, 2015”

  1. This may not be a fraud featured on the news headlines, but it is a very common fraud. It takes advantage of the vulnerable and desperate, its called “romance fraud” and takes place online. Victims are typically lonely and looking for companionship. This one in particular resulted in a Parksville woman losing $3,000 to somebody she met on Flirt.com

  2. Suspect, Gary Sorenson, in “largest Ponzi-type scheme” in Canadian history delivers his own closing arguments after pleading not guilty. Sorenson and Milowe Brost are accused of defrauding investors up to $400 million in offences that took place between 1999 and 2008.

  3. Alex Hope, nicknamed ‘King Popper’ for spending 32,000 British pounds in one night at a champagne spraying party, is accused of running a Ponzi scheme to fund his playboy lifestyle. The 25 year old reinvented himself as an investment wiz-kid, promising returns to investors as large as 50 percent in just three months.

    http://www.dailymail.co.uk/news/article-2859404/Currency-trader-accused-Ponzi-scheme-dubbed-King-Popper-spraying-32-000-champagne-nightclub.html

  4. Thanks, everyone for the great links to a variety of interesting Ponzi schemes. I can see we’ll have some interesting conversations this evening.

    If you have a minute, take a look at this video on dishonesty by Dr. Dan Ariely.

    Have a good day.
    Vanessa

  5. *Note this post is correcting the mistake of posting the site link into the website bar.

    Here is an interesting article written by Jordan Maglich form Forbes. He discusses a virtual Ponzi scheme that was conducted by a man from Texas. Scamming individuals using Bitcoins as currency, he was able to steal approximately 4.5 million dollars. Take a look.

    http://www.forbes.com/sites/jordanmaglich/2014/11/06/texas-man-arrested-for-4-5-million-bitcoin-ponzi-scheme/

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