Four Toronto men charged in $1.4 million small business loan fraud

On May 13, 2011, three individuals made their first court appearance at Court Room 111, Old City Hall Court House, Toronto, Ontario, as a result of criminal charges laid by the RCMP’s Greater Toronto Area Commercial Crime Section. These charges stem from a three year investigation that lead to four Toronto residents being charged with Fraud Over $5000. The investigation was precipitated by concerns identified by Industry Canada, an agency that administers the Small Business Loan Financing Program.

RCMP investigators believe the individuals involved produced and provided false invoices, false leases, and false financial documentation to support loan applications to a financial institution, purportedly for the purchase of equipment and completion of leasehold improvements. This allowed the individuals to obtain loan funds for their own use rather than the stated purpose. Eight loans, exceeding $1,400,000 in total, were obtained and defaulted, leaving the financial institution with a significant loss. The Canada Small Business Financing Act requires Industry Canada to share the eligible losses incurred by financial institutions as long as all program requirements are met.

Individuals arrested and charged with Fraud Over $5000 are:

David Caporiccio (age 42) of Toronto
Italo Sabato (age 52) of Toronto
Daniel Plechac (age 33) of Toronto

A Canada-wide arrest warrant has been issued for Sarabjit Singh (age 38) of Toronto, who is believed to have left Canada.

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