York police lay 42 charges in $30M business fraud scheme
After acquiring an Ontario-based shipping business, police say the accused allegedly misrepresented the company's financial status and siphoned off large sums of money
Risk & Compliance
AURORA, Ont.—Nine people are facing a total of 42 charges in an alleged fraud police say cost businesses, banks and investors more than $30 million.
York regional police say they began investigating AC Simmonds Group in November 2014 following several complaints from people alleging they had been defrauded.
Investigators say BLVD Holdings, one of 80 shell companies registered by Simmonds Group, began the process of acquiring a food shipping company in York Region in early 2014.
They say AC Simmonds was to purchase the company for $10 million from the owner who had started the company and operated it for 45 years.
It’s alleged that after taking control of the business, Simmonds misrepresented the financial status of the company and funnelled large sums of money out of the business to the accused and the shell companies to the point of bankrupting the food company.
Nine people from across the GTA, ranging in age from 44 to 71, face charges that include fraud over $5,000, laundering proceeds of crime, and fraud affecting the public market.