Ex-RBC executive charged with running $10.5m bank loan program in Toronto
A former RBC business manager has been charged along with three other people in the GTA for their alleged involvement in a $10.5 million fraudulent loan scheme.
The Serious Fraud Office for Ontario (SFO) laid the charges “following a lengthy investigation” into the multi-million dollar loan scam, according to a press release issued on April 22.
The SFO reportedly approached the former RBC employee who had “accurate knowledge of a Government of Canada-backed loan program”, in early January 2021, which police say orchestrated the alleged scheme.
Police say the former employee recruited other associates to help them entice unknown clients to apply for government-backed loans. The loan program “was offered by all Canadian banks to assist small businesses with commercial or leasehold improvement loans,” the statement said.
However, bank documents used to secure the loans, such as rental contracts and invoices, were reportedly falsified to ensure their approval.
Once the loans were approved, the money was reportedly split between several vendors who were “directly associated” with the former RBC employee.
The loan money was around $10.5 million, and the borrowers received only a ‘small portion’ of the money, while the sellers would have received most of the funds ‘for work which were never completed”.
Dillon Nanavati, a 37-year-old man from North York, was charged with fraud over $5,000 and forged documents. Aggash Mohan, Nicksain Kalaimathian and Jonnystan Amirtharatnam of Scarborough have all been charged with fraud over $5,000.
All four defendants are scheduled to appear in Ontario Court of Justice in Toronto on May 31, 2022.