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Frauds reported in the media – week of September 5th

Investigation Counsel Fraud Recovery Lawyers

Massive unreported security breach, $2 million alleged fraud at NorQuest College

By: CBC News
Edited by: Investigation Counsel
Date: September 5, 2016

Court documents allege IT manager conducted “harassment” campaign after firing. After NorQuest College fired Clarence Orleski, its technology infrastructure manager, in December 2012, an investigation uncovered what the college alleged were two separate fraud schemes that cost the college nearly $2 million in damages.

Sexually graphic emails

Shortly after the work day began on Feb. 19, 2013, a bizarre email popped up in the inboxes of dozens of NorQuest College senior executives and staff. The anonymous sender had attached a PDF document that contained a string of sexually graphic emails and texts that appear to have been exchanged between a senior NorQuest executive and a woman who was not his wife.

Read the full article at CBC News.
Read more at Canadian Fraud News Inc.

Microsoft and Google browsers had high ad fraud rate, study claims

By: Wall Street Journal
Edited by: Investigation Counsel
Date: September 6, 2016

Ad fraud activity is highest on certain browsers made by Microsoft Corp. and Alphabet Inc.’s Google, according to research by ad fraud detection company FraudLogix.

Bad news for advertisers

Fraudsters can manipulate consumers’ web browser software for their financial gain by infecting browsers with malicious code and forcing them to load certain webpages. For advertisers this is bad news, since they can wind up paying for ads which can never actually be seen by real people.

Read the full article at the Wall Street Journal website.
Read more at Canadian Fraud News Inc.

Ontario woman loses $30,000 in romance and painted money scam

By: Can-India
Edited by: Investigation Counsel
Date: September 6, 2016

The York Regional Police Major Fraud Unit have charged a 41-year-old man from the City of Brampton in connection with a $30,000 fraud and they believe there may be more victims. The investigation began in April 2016, after a 51-year-old woman from the City of Vaughan came forward to report that she had been defrauded.

Brampton man charged for romance fraud

The victim told investigators that after meeting a person online and falling victim to a classic romance scam, the fraudster agreed to pay back some of the victim’s money that was allegedly borrowed. Arrangements were made to meet an associate, who claimed to be a diplomat from the United Kingdom by the name of Adam David who would return her funds. The accused is scheduled to appear before the Ontario Court of Justice in Newmarket on September 29, 2016.

Read the full article at Can-India.
Video at CTV News: VIDEO.
Read more at Canadian Fraud News Inc.

Fraudulent CancerCare canvasser collected money in Manitoba

By: CBC News
Edited by: Investigation Counsel
Date: September 6, 2016

A Winnipeg man faces fraud charges after some people in St. James and River Heights gave money to someone who claimed to be collecting door-to-door donations on behalf of CancerCare Manitoba. Investigators determined that the person was canvassing fraudulently and managed to obtain money from at least eight unsuspecting residents, police said.

Collecting door-to-door donations

A 38-year-old man was arrested on Tuesday and charged with eight counts each of fraud under $5,000 and failing to comply with a probation order. He has been taken into custody. It’s unclear how much money was collected in total, or whether any of the victims will get their donations back.

Read the full article at CBC News.
Read more at Canadian Fraud News Inc.

Calgary woman charged with fraud for allegedly faking she had cancer

By: Global News
Edited by: Investigation Counsel
Date: September 7, 2016

Jennifer Halford has been charged with fraud after police say she raised money to help her fight the cancer she never had. The 34-year-old allegedly received donations – mostly in the form of gift certificates, food and some cash – for her cancer treatments and other expenses. Global News spoke with several mothers who said they met Halford at Jamie’s Preschool, a place for children facing cancer, blood disorders, organ transplants and other critical illnesses.

Currently out on bail

Halford is facing seven counts of fraud under $5,000. Police said the investigation is ongoing and additional charges could be laid. Halford is currently out on bail.

Read more and see the video at Global News.
Read more at Canadian Fraud News Inc.

Quantifying your damages as a victim of fraud

By: Canadian Fraud News Inc.
Edited by: Investigation Counsel
Date: September 6, 2016

Fraud victims that sue their fraudster may recover more money than their initial loss of investment capital or due to employee theft. In practice, however, it is recommended that the fraud victim first obtain a default or summary judgment for the amount of the initial loss, called the liquid damages.

Restitution by fraudster to the victim

This article provides some basic legal information on the quantification of judgment awards and recovery for economic loss, often referred to as opportunity cost or consequential loss. Alternatively, where fraudsters have profited from the use of their victim’s funds—by investing it themselves, for example—they will be required to make restitution to the victim by disgorging the profits they obtained this way.

Read more at Canadian Fraud News Inc.

Foreign judgment of fraud in the sympathetic Canadian Civil Courts

By: Canadian Fraud News Inc.
Edited by: Investigation Counsel
Date: September 6, 2016

It is well known internationally that the Canadian Criminal Courts are soft on fraud and financial crimes and accordingly fraudsters seek haven in Canada to perpetrate their frauds. Only frauds over $1M in value have mandatory minimum prison sentences. Part of the reason for Canada’s lax sentencing of financial crimes is because it costs Canadian taxpayers over $100,000 a year to house inmates in Canadian prisons.

General principles for foreign fraud victims

It is because financial recovery is judicially supported in Canada’s civil courts that foreign fraud victims seek to recover money from fraudsters resident or holding property in Canada. This article provides some general principles for foreign fraud victims with judgments received from their courts to consider when spending their litigation funds enforcing their judgments in Canada.

Read more at Canadian Fraud News Inc.

Binary ‘Magnum’ options scammer from UK makes victims in Canada

By: Canadian Fraud News Inc.
Edited by: Investigation Counsel
Date: September 7, 2016

In May this year the British Colombia Securities Commission became aware that a BC resident was able to open an account with Magnum Options. Magnum Options purports to be a binary options trading platform provider. Since 2014 people can trade Magnum Options with a minimum deposit of $200. Expiry times range widely from 60 seconds to months. They claim to offer up to 81% profit, but the real range of binary options will be closer to 60%-80%.

Deceitful bonuses of Magnum Options

Magnum options offer new traders bonuses ranging from 10% all the way to 100%. Maximum bonus will be $10 000. The larger the deposit amount, the higher the bonus percentage will be. The bonus causes the recipient to incur a 40% trading volume limit prior to being able to withdraw any funds. So unless you trade a massive amount of money (and routinely win) then you’ll never get any funds in return. Additionally by accepting the bonus you will not be able to close your account until you reach the trading volume.

Read more at Canadian Fraud News Inc.

How to turn the tables on fake CEO scammers and whaling attacks

CEO wire transfer scams (also sometimes known as whaling attacks, BEC, or Business Email Compromise) are becoming a big problem. Scammers, impersonating a CEO or other high-up executive inside a company, send an urgent request to a more junior member of staff, urging them to forward sensitive information or transfer a large amount of money.

Millions of dollars stolen with scam

The problem is that no-one likes to say “no” to the big boss. As a result, some companies have had many millions of dollars stolen from them – recently, for instance, Graham wrote about a European firm which lost 40 million Euros after it was targeted by an email scammer.

Read more Graham Cluley or this LinkedIn-article from Vincent Voci.
Read more at Canadian Fraud News Inc.

Watch this weeks animation about Corporate Fraud:

What is employee fraud? Scheme explained in short animation

 

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