RCMP has arrested six individuals in Toronto after thousands of investors and the Canadian government lost millions of dollars in an alleged false investment scheme.
The investigation began in 2012 when Mounties received information about people involved in a possible tax avoidance scheme.
Ontario RCMP commanding officer Stephen White spoke at a news conference Wednesday and indicated that the scheme involved selling "business losses" on real and fictitious companies that people could use as a deduction on their income tax, thus potentially saving them thousands in taxes.
White further mentioned that the alleged fraudulent scheme cost the federal government more than $200-million.
Six individuals have been arrested and each of them is charged with two counts of fraud over $5,000 and commission of an offence for a criminal organization.
Furthermore, the investigation in ongoing and the police say that further arrests and charges are possible.
The six arrested are:
Vincent Villanti, 66
Shane Davidson Smith, 46
David Prentice, 52
Ravendra Chaudhary, 65
Andrew Lloyd, 42, and
Joe Loschiavo, 49
