$2,000,000 Financial Fraud Ring Busted

(HAMILTON, ON) – Several Ontario residents face charges following a complex joint investigation involving financial fraud and account takeovers.

Operation SPRINGSTON originated in the Greater Toronto Area, Hamilton and Halton Region but involved hundreds of fraudulent transactions in locations across Canada including British Columbia, Alberta, Ontario, Québec, and Nova Scotia.

Ontario Provincial Police (OPP) Chief Superintendent Don BELL, Deputy Chief Bob PERCY of Halton Regional Police, A/Supt. Ryan DIODATI of Hamilton Police Service, and representatives of the RCMP and Canadian Bankers Association revealed details of Operation SPRINGSTON at a news conference today.

Investigation revealed an organized crime group used malware, phishing, and other means to obtain private information of unsuspecting businesses and individuals in order to take control of their banking services. The individuals were then able to order or re-direct new cheques and banking access cards to members of this group and defraud the account holders and banks. Counterfeit identity documents would be manufactured and provided to recruits along with a supporting cover story to support their attendance at financial institutions. Recruits caused cheques to be acted upon after deposit and funds to be withdrawn and given back to the criminal organization while the recruits withheld a percentage as their payment. The victims included hundreds of individuals and individual financial institutions. Police believe the losses are in excess of $2-million.

Eight (8) search warrants executed this week at six locations in Ontario and two in Quebec. One of the search warrants executed in Toronto revealed a sophisticated counterfeit identification lab containing various types of falsified identification at various stages of manufacture. Large quantities of supplies and equipment was seized including plastic cards, embossing machines, high end printers, laminating machines and approximately $30,000 in cash. Other judicial authorizations were executed during the course of the investigation to acquire business records. As a result, 33 people have been charged with approximately 200 offences, including Identity Theft and Participating in a Criminal Organization.

All of the accused persons are expected to appear at the Ontario Court of Justice at various times, dates, and locations. The investigation continues.

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