A 62-year-old Brampton man has been charged in what police say was a $1.4 million Ponzi investment scheme that targeted elderly people.
In a news release on Friday, police revealed details of their investigation into the alleged scheme that began in 2017.
They said victims invested money with the man and his company BLM Canada Corporation on the assumption that he was a successful mortgage broker.
“Investors were told their funds would be used in private mortgages, a condominium development and a legal trust, with returns guaranteed,” police said.
Some investors initially received payments, which police allege were from legitimate investments but money from other investors, creating “the illusion of returns.”
Police said the total reported loss in the alleged scheme was $1,465,000.
The man behind the alleged scheme, identified as 62-year-old Navdeep Boparai, was arrested on May 26 and charged with two counts each of fraud over $5,000, possession of property obtained by crime and laundering the proceeds of a crime.
He was released on an undertaking and is scheduled to appear in court on June 29.
Police said there may be additional victims, who are being encouraged to come forward and contact investigators.
“Always verify the credentials of individuals or companies, review documentation carefully, and seek independent financial or legal advice before committing funds,” police said, reminding the public to be cautious when investing.
“Be wary of guaranteed returns, high-yield investments with little risk, or pressure to invest quickly.”
