A former Royal Bank of Canada employee and three other Toronto residents have been charged with fraud after allegedly raising about $ 10.5 million through a business loan scheme.
The charges were announced Friday by the Ontario Serious Fraud Office, a unit made up of police and prosecutors that was set up in 2019 to prosecute white-collar crimes. The service said it launched its investigation in January 2021.
Investigators say the former bank manager has worked with others to encourage “involuntary borrowers” to apply for Canadian small business loans, a government-backed program that helps small businesses improve their rent. False leasing agreements and invoices were allegedly set up to ensure that the loans were accepted.
Once the loans were approved, investigators say, most of the funds were distributed to suppliers directly linked to the former bank governor for work that was never completed.
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Dylan Nanawati, 37, of North York, has been charged with embezzling more than $ 5,000 and issuing a false document. RBC spokeswoman Edith Galinaitis confirmed that Mr Nanavati had worked for the bank. According to a LinkedIn account associated with his name, he was a senior account manager there for two years, between 2013 and 2015.
Ms Galinaitis said the alleged behavior took place after Mr Nanavati’s job at RBC ended. “We take allegations of fraud seriously and RBC does not tolerate violations of the law. We reported this issue to the police in January 2021 and we cooperated with them, “she added.
The other three defendants are Scarborough residents: Agash Mohan, 25; Nixain Kalaimatian, 29; and Johnistan Amirtaratnam, 26. All three are charged with embezzling more than $ 5,000.
The defendants are expected to appear in the Ontario Court on May 31.
Under the Canadian Penal Code, those convicted of fraud in excess of $ 5,000 are facing up to 14 years in prison, with a minimum of two years if the amount exceeds $ 1 million. Forgery of documents is punishable by up to 10 years.
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