A Toronto man has been charged in connection with an alleged $6.6 million foreign exchange investment fraud that affected 28 investors, according to the Ontario Securities Commission (OSC).
Prosecutors allege Seyed Mohammad Ali Nojoumi, who also goes by Ali Nojoumi, misled investors into believing their money would be used for foreign exchange trading through a company known as Smart Prime Group. Instead, the OSC claims the funds were diverted to cover personal expenses and to make payments to other investors. Neither Nojoumi nor the other individuals controlling the company were registered to sell securities in Ontario.
Nojoumi, 46, was arrested last week and charged with fraud over $5,000 and possession of proceeds of crime. Court records show he was later released on $5,000 bail with a surety.
The case follows multiple civil lawsuits filed by investors seeking to recover their losses. Among them are Mina Amini and her husband, who invested more than $300,000 from savings and loans. The financial loss ultimately forced them into bankruptcy.
Court filings allege Nojoumi continued soliciting millions from investors even while facing a prior fraud charge related to a separate investment scheme. That earlier charge was withdrawn in 2022 after restitution was paid, though investors claim their funds may have been used to cover those repayments.
After the charge was dropped, Nojoumi allegedly went on to raise another $6.5 million, primarily from members of Toronto’s Persian community. In court filings, Nojoumi has denied all allegations, asserting the funds were loans rather than fraudulent investments.
Several victims say the criminal charges bring some relief, but they stress that full justice will only come if investors are repaid. The case has renewed concerns about how investment fraud is prosecuted in Canada, as recent data shows many fraud cases result in withdrawn or stayed charges.
