A 24-year-old man has been arrested in connection with an alleged investment scam that defrauded a Toronto resident of over $200,000 by posing as a global asset management company.
According to Toronto police, the suspects placed advertisements on internet search engines to promote several fraudulent investment opportunities. When victims clicked on these ads, they were directed to fake investment comparison sites where they were prompted to enter personal information, including their name, phone number, and email address.
The suspects then allegedly posed as representatives of Schroders Management Inc., contacting victims via phone and sending fraudulent prospectuses and application forms. They offered enticing returns on investments, claiming “seemingly little or no risk.” This led to one victim in Toronto losing over $200,000.
On Friday, Toronto police charged Arvinder Singh of Brampton with fraud over $5,000, possession of proceeds obtained by crime over $5,000, and laundering proceeds of crime. Authorities have not indicated whether they are seeking additional suspects in the scam.
Police provided several tips for prospective investors to avoid scams:
- Be cautious of unsolicited investment offers or cold calls.
- Take your time before making decisions; consult with a trusted financial planner or institution.
- Verify employment by contacting the alleged investment company directly.
- Conduct a Google search to check for any scams or complaints associated with the company.
- Report any suspected investment scams to the police.
“Members of the public are reminded to be vigilant any time they’re searching for investment opportunities,” police advised.