In collaboration with Industry Canada and the Royal Bank of Canada, the Royal Canadian Mounted Police (RCMP) has charged three Toronto area individuals with a total of 23 fraud related charges. The charges include offences under the Canada Small Business Financing Act and the Criminal Code. It is alleged these individuals furnished false documents, reports or information, and failed to use the loan funds for the purpose stated on the loan application. Investigators from the GTA Commercial Crime Section have determined the total value of this fraud was in excess of six hundred thousand dollars.
As one of the lending institutions, the irregularities were initially detected by the Royal Bank of Canada. Twenty three (23) charges were laid against 39-year-old Miriam COHEN of Willowdale, Ontario, including 8 charges under the Canada Small Business Financing Act and 15 charges relating to fraud, conspiracy to commit fraud, and uttering forged documents under the Criminal Code.
The other two individuals are Marshall KAZMAN (age 55) and Gad LEVY (age 44) who are each facing 11 charges under the Criminal Code relating to fraud and conspiracy to commit fraud.
Investigators allege COHEN applied for loans at RBC, Scotia Bank, Bank of Montreal, and TD Canada Trust by submitting fraudulent or forged documents for equipment and upgrades to leased property that were never completed. It is alleged these transactions took place between 2007 and 2008. The anomalies were discovered by RBC investigators when COHEN defaulted on her loan.
The 1st appearance for the accused individuals is scheduled for July 14th, 2011, at the Finch Avenue West Courthouse in Toronto, Ontario. If convicted, penalties range from a fine of up to $500,000.00 or up to 5 years in prison, or both, under the Canada Small Business Financing Act and up to 14 years in prison under the Criminal Code.