(Toronto, Ontario - Friday, May 13, 2011) – On May 13, 2011, as a result of criminal charges laid by the RCMP, three individuals made their first court appearance at Court Room 111, Old City Hall Court House, Toronto, Ontario. The RCMP's Greater Toronto Area Commercial Crime Section conducted a three year investigation that resulted in four Toronto individuals being charged with Fraud Over $5000. Initially concerns were identified by Industry Canada, an agency that administers the Small Business Loan Financing Program.
RCMP investigators believe the individuals involved produced and provided to a financial institution: false invoices, false leases, and false financial documentation to support loan applications, purportedly for the purchase of equipment and completion of leasehold improvements. This allowed the individuals to obtain the loan funds for their own use and not for the intended purpose.
The eight loans exceeding $1,400,000 were obtained and defaulted, thereby leaving the financial institution with a 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.
The individuals charged and arrested on Fraud Over $5000 charges 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.
"We are grateful for the support and assistance provided to us by Industry Canada in pursuing this investigation." stated Insp. Art Pittman of the RCMP's Greater Toronto Area Commercial Crime Section. "This investigation is an important part of our mandate of protecting the economic security of Canadians by safeguarding the integrity of the Canada Small Business Loan Financing program."
For further information:
Insp. Art Pittman
Project Operations Officer, GTA Commercial Crime Section
RCMP "O" Division
Office: (905) 876-9778