The Royal Bank believes to have been a victim of fraud of$ 2 Million
Photo Antoine Lacroix
The company Usitech said to operate in these local Delson, on the South Shore of Montreal, but when a representative of the Royal Bank came on the spot, he had the bad surprise to see that there was no activity, suggesting that the banking institution had been fraudée.
Wednesday, 16 August, 2017 06:30
Wednesday, 16 August, 2017 06:30
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Six alleged fraudsters quebecers who allegedly used false invoices to steal more than $ 2 million to the Royal Bank, since last summer, are now being pursued in civil cases, and they may lose all their property.
“The defendants conspired together to orchestrate a major fraud in the context of three cases of funding,” says the Royal Bank in a court document filed recently at the palais de justice of Montreal.
All would have started in June 2016, when the representative of an enterprise of doors and windows would have asked the Bank to finance the purchase of equipment from its supplier. After a check, the Bank has agreed and has granted various credits amounting to nearly $ 714 000 $.
Shortly after, two other companies have done the same, earning a total of $1.3 million.
The money was used to develop the companies Group Nexus, Usitech, as well as Windows and Doors M. A. inc. of Lévis. Except that it wasn’t the case, according to the court document.
The RBC has had a flea in the ear when a letter sent to the offices of Usitech has been returned to the Bank, under the pretext that the mailing address was not good. A director visited the site, Delson, on the South Shore of Montreal, to confirm the lack of activity in the premises.
During a visit to another company, a director also noted the lack of activity. Some of the equipment were piled up in a corner, while others appeared to be different from those that were supposed to have been purchased.
“The bills provided seem to be false, indicates that an assessor in a report cited in the court document. The descriptions, as well as the brands and/or models seem to be non-existent. In terms of values, they are in a great majority not actual and skewed to the upside. “
For his part, the director has not been able to push his investigation, because the person on the spot could have been for him a “vulgar gesture” before asking him to leave the premises.
“He has made subtle threats by telling him that he was a dangerous place for her,” says the Bank in the court document.
Other irregularity, the head of the targeted companies have begun to remove thousands of dollars on his Visa card with interest of 22 %, while they had a line of credit of $ 150,000 with interest much lower.
Believed to have been a victim of fraud, the Bank now wants to seize the assets of businesses in order to recover his money.
“As the magnitude of the fraud […] that the use of false documents, false vendor and the dishonest conduct persistent [companies] would fear that, without the seizure before judgment, the recovery of the debt of RBC is put in danger “, one can read in the court document.
As one of the persons referred to, Benjamin Francœur, would be the son of Norman Francœur, an alleged fraudster was arrested last week. According to the Sûreté du Québec Francœur father would have used a ploy similar to that of her son.
Unless an amicable agreement, the case will be presented to a judge in the coming weeks. The Newspaper has not been able to join the six individuals named in the civil lawsuit.
The alleged fraud by Royal Bank
- Equipment Steelco and Development G1 are presented falsely as suppliers of equipment.
- Windows and doors M. A., Usitech and Group Nexus use the two false suppliers for fraudulently obtaining the financing.
- The Bank finances the purchase of equipment and supplies leases, lines of credit and credit cards.
- The invoices provided by the companies are false and the equipment purchased does not correspond to what is indicated on the invoices.
- The fraudsters drain the accounts and put $ 2 million into the pockets.
Source : Royal Bank of Canada