A loan fraud and money laundering investigation has netted 25 arrests, say Toronto Police.

Detective Constable Sarath Thayalan told a press conference this morning, “Between March 2011 and October 2012, [we allege] several people participated in organized scheme to defraud banks and private lenders in the Greater Toronto Area [with the intent] to launder the proceeds.”

Thayalan declined to name specific financial institutions, but stated “approximately half a dozen” were targeted and “they are significant players in the financial industry [and] companies we all deal with on a regular basis.”

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It’s alleged the total value of both the attempted and successful frauds was $8 million. Thayalan added there were 15 alleged incidents of fraud, and that Toronto Police believe there are still more shell companies and victims to be uncovered.

The alleged perpetrators used shell companies to apply for credit from the targeted lenders. To do so, they produced large amounts of fraudulent documentation and impersonated legitimate, “renowned” accountants in the GTA.

They would also stage and pass off buildings and equipment of other legitimate businesses as that of a shell company.

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The alleged shell companies were located in Vaughan, Woodbridge, Toronto and Mississauga, and comprised two financial companies and several building materials companies.

Thayalan said representatives from the victim institutions would visit the scheme participants at their supposed businesses. The reps would tour the business, speak to employees and even see equipment.

The lender would then open a line of credit for the alleged fraudsters, who would withdraw money and launder it through established networks, said Thayalan.

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In some cases, owners of legitimate businesses were allegedly in on the scheme and lent premises to shell companies for the purposes of fooling lenders. In other cases, owners permitted use of their operations but did not know their businesses were being used to perpetrate fraud.

Arrests stemming from the investigation have been ongoing between August 2012 and July 2013. The alleged fraudsters were involved to varying degrees in the scheme, said Thayalan. “Some laundered money; some participated in fraud.”

Some money has been recovered “by civil processes started by the victims;” other monies have been frozen.

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Thayalan said some alleged laundered money stayed in Ontario; some went to the U.S., Hong Kong and Switzerland. He added many of the arrested are Canadian citizens. The charges include fraud over $5,000, attempted fraud, laundering proceeds of crime, possession of proceeds of crime, public mischief and conspiracy.

For information on the names of the accused and the shell companies, go here.