Charges Laid in Bankruptcy Fraud InvestigationThis article will review three recent RCMP investigations in which Charges Were Laid in Relation to the Bankruptcy Fraud Investigation.

KARAMJIT Singh Saini, 57, of Brampton, Ontario, has been charged with offences under the Bankruptcy and Insolvency Act.

The investigation began in January 2015 in response to concerns raised by the bankrupt’s Licensed Insolvency Trustee, BDO Canada Limited, who claimed Saini failed to provide required documentation and information relating to his November 2013 bankruptcy.

Saini has been charged with seven counts of failure to comply with duties of a bankrupt and other counts contrary to the Bankruptcy and Insolvency Act.

The RCMP noted that the bankruptcy system is intended to afford a fresh start for the honest but unfortunate debtor.

However, there are instances where individuals abuse the system by failing to comply with their duties under the BIA and / or engaging in fraudulent criminal activities.

Offenders are identified by the OSB detection programs or through complaints from creditors, trustees or the general public.

TORONTO, March 22, 2013 /CNW/ –

The Integrated Bankruptcy Enforcement Unit comprised of the Royal Canadian Mounted Police (RCMP) – Greater Toronto Area (GTA) Commercial Crime Section and the Ontario Region Special Investigation Unit of the Office of the Superintendent of Bankruptcy (OSB), charged the following individual with offences under the Criminal Code and the Bankruptcy and Insolvency Act (BIA).

The allegations all relate to fraud and the abuse of the bankruptcy process.

Vinh Cuong PHAM, age 57, of Brampton has been charged under the Criminal Code, Sections 380(1)(a) ‘fraud over $5000′ and twice under Section 368(1) ‘uttering forged documents’. Furthermore, Mr. PHAM is also charged with four additional offences under the Bankruptcy & Insolvency Act. This includes Section 198(1)(b) ‘failure to answer fully and truthfully’, Section 198(1)(c) ‘material omission’, Section 198(1)(g) ‘disposition of property obtained on unpaid credit’, and Section 198(2) and ‘failing to comply with duties as a bankrupt’.

Furthermore, Mr. PHAM is also charged with four additional offences under the Bankruptcy & Insolvency Act. This includes Section 198(1)(b) ‘failure to answer fully and truthfully’, Section 198(1)(c) ‘material omission’, Section 198(1)(g) ‘disposition of property obtained on unpaid credit’, and Section 198(2) and ‘failing to comply with duties as a bankrupt’.

The matter is scheduled for first appearance at Ontario Court of Justice – Old City Hall in Toronto on March 22nd, 2013.

The RCMP and the OSB Special Investigation Units will continue to combine their efforts to investigate allegations of criminal wrongdoing related to bankruptcy and insolvency matters in order to protect the integrity of the insolvency system in Canada.

SOURCE: Royal Canadian Mounted Police

For further information:
Sgt. Richard Rollings, Media Relations

The Integrated Bankruptcy Enforcement Unit comprised of the Royal Canadian Mounted Police (RCMP) – Greater Toronto Area Financial Crime Section and the Ontario Region Special Investigation Unit (SIU) of the Office of the Superintendent of Bankruptcy (OSB), have charged Campbellville resident, Calin Lawrynowicz 45, with offences under the Criminal Code and the Bankruptcy and Insolvency Act (BIA).

Police allege that Lawrynowicz was a principal in businesses related to law, real estate and financial consultation that he used to service his clients. As such, he became the defendant in several lawsuits involving millions of dollars in claims against him, which prompted him to declare bankruptcy.

The bankruptcy system relies on the bankrupt to cooperate fully and to properly perform duties required by the Bankruptcy and Insolvency Act. The system requires a bankrupt to report all his assets and debts. In return, the bankrupt has certain debts erased upon his discharge from bankruptcy.

At the time of his bankruptcy, Lawrynowicz reported having assets of $175,000 and more than $4 million in liabilities.

Police allege Lawrynowicz disposed of an asset prior to declaring bankruptcy thereby depriving his creditors of the cash benefit of that asset. It is also alleged that he neglected or refused to answer questions fully and truthfully during his examination under oath by one of his creditors.

Lawrynowicz was charged with:

  • Fraud over $5,000;
  • Fraudulent disposal of property contrary to the BIA;
  • Refuse or neglect to answer fully and truthfully all proper questions at an examination contrary to the BIA;
  • Failure to comply with duties of a bankrupt contrary to the BIA.