Toronto police have arrested a man in connection with a $1.2 million securities fraud investigation.
Police said Thursday that on April 24, they arrested Carlos Alberto Pavao, 51, of Mississauga, Ont., and charged him with 11 counts of fraud over $5,000. None of the allegations have been proven. He is scheduled to appear in court on June 14.
According to police, Pavao set up a company to attract investors to collectively purchase shares in two publicly traded mining companies. Police say that he set up a bank account for the company, received funds from investors payable to the company, and that the investors entered into a subscription agreement with the company. However, police maintain that the shares were not purchased, and that Pavao was not registered with the Ontario Securities Commission to trade in securities.
Police say that 10 victims in the case lost in excess of $1.2 million, and that they believe there may be more victims.