Toronto police have laid charges over an alleged “advance fee” fraud scheme that was targeting victims of possible precious gem fraud.
Two men were arrested on May 12 and have been charged in connection with an alleged scheme that targeted investors that may have been defrauded when investing in diamonds and other precious gems, the Toronto Police Service’s financial crimes unit announced.
According to police, victims were contacted by men who claimed to be working for firms — Ardern & Bennett LLP and Premier Credit Union — that were involved with settling a class action lawsuit against fraudulent precious gem dealers.
“The men promised large cash settlements from a lawsuit provided the victims first paid ‘attorney fees’ in advance of receiving any payouts,” police allege.
However, the lawsuit settlement itself was phoney, and investors lost another $600,000 to the alleged follow-up fraud, police say.
Based on evidence collected during the investigation so far, police believe that there are more victims of the scheme.
Police said that Joseph Simon Rassi, 32, of Aurora, Ont. has been charged with two counts of fraud over $5,000 and two counts of conspiracy to commit an indictable offence over $5,000. He is due to appear in court in Toronto on July 22.
Erik Ariel Fishman, 40, of Vaughan, Ont. has been charged with two counts of possession of proceeds of crime over $5,000. He is slated to appear in court of July 21.
The allegations have not been proven.