TORONTO, Sept. 3 - On August 18th, 2008 the Greater Toronto Area Commercial Crime Section charged twelve individuals with offences under the Criminal Code of Canada pertaining to the Canada Small Business Financing Act. The charges ar re the result of a request for an investigation from the Royal Bank of Canada and Industry Canada which is responsible for overseeing the Federal Government's Small Business Financing Program.
The investigation lead the RCMP to be lieve that false invoices had been provided by a number of companies purporting to be supplying equipment and doing leasehold improvements for the set up of new businesses, to the involved borrowers. It is alleged that the borrowers presented the invoic es to the Royal Bank of Canada, received the funds, but failed to set up the businesses as required by the Canada Small Business Financing Act. The total amount of the loans was in excess of one million dollars.
Nineteen charges w ere laid including 6 counts of Fraud Over $5,000.00, involving all twelve individuals, and thirteen counts of Uttering A Forged Document involving all twelve individuals.
Joseph BITTON, age 50 of Toronto, Ontario
Simon SOTTO, age 72 of Thornhill, Ontario
Eric SOTTO, age 57of Thornhill, Ontario
Jack LEWKOWICH, age 61 of Thornhill, Ontario
Ted GREENWALD, age 50 of Thornhill, Ontario
Claude BITTON, age 59 of North York
Frederick ELMALEH, age 40 of Florida, USA
Philippe ELMALEH, age 33 of Thornhill, Ontario
Ahmed NAQVI, age 39 of Mississauga, Ontario
Alexander BUKHSHTABER, age 34 of Florida, USA
Merc edes ELMALEH, age 60 of Thornhill, Ontario
Victor ELMALEH, age 63 of Thornhill, Ontario
The first court appearance is scheduled for September 12th, 2008 at Old City Hall in Toronto.
The Greater Toronto Are a Commercial Crime Section is responsible for the investigation of allegations where criminal conduct is suspected in relation to the Small Business Financing Act. In partnership with Industry Canada, the RCMP actively investigates abuses which occur with in the Small Business Financing process. "This investigation represents the commitment of the RCMPworking together with Industry Canada and Canadian Banks to preserve the integrity of Government Programs", stated Inspector David Bellamy, Office r In Charge of the GTA Commercial Crime Section.
For further information: Sgt. Marc LaPorte, Media Relations, RCMP "O" Division, Office: (519) 640-7302, Cell: (416) 992-4409
