Instances of fraud continue to rise at an alarming rate across Canada. (Credit: Richard Buchan/The Canadian Press)
Two Ontario men have been arrested and face multiple charges after a three-year police investigation revealed the duo had allegedly been running an investment scam, pocketing over $3 million in the form of loans from private investors.
Halton Police said an investigation was launched by their Fraud Unit after receiving reports from 20 complainants who had invested in Oakville-based “OOM Energy,” also known as “MCS Energy.”
“OOM Energy misled victims to believe that their investments were guaranteed by an insurance program, and were also supplied with forged insurance documents,” Halton Police said in a press release.
Investigators say over $3 million was loaned to OOM Energy by private investors in respect to projects that involved the installation of electrical generators.
Oakville-resident Craig Hugh Clydesdale, owner of OOM Energy, and Markham-resident Thomas Craig McBeath, who worked as an insurance broker for the business, were arrested on June 16, 2023.
Both men have been charged with multiple counts of fraud over $5,000 and forgery related offences.
“It is believed that there may be more victims and witnesses in the community,” said the Halton Police statement. “Anyone with further information is asked to contact D/Cst. Ed Spence of the Halton Police Regional Fraud Unit at (905) 465-8746.”
How can you protect yourself against similar scams?
As Canadians spend an increasing amount of time online to shop, work or communicate, data released by the Canadian Anti-Fraud Centre (CAFC) reveals that fraud, identity crimes and associated cybercrime are growing at an alarming rate.
During 2022, CAFC received fraud reports totalling a staggering $531M in victim losses — a drastic increase from the $379 million reported during 2021 by the same agency.
So what are some steps you can take to determine if a business or organization you want to invest into is a scam or legitimate?
CAFC defines an investment scam as the “solicitation for investments into false or deceptive investment opportunities. These opportunities falsely promise higher-than-normal returns. However, investors lose most or all their money.”
Some examples of these include:
If you are offered unsolicited investment opportunities (even from friends and family), higher-than-normal returns, websites that appear to be fake or requests for cryptocurrency payments, your suspicions should be raised.
To protect your assets from potential scammers, CAFC warns if you choose to invest or partner with a business you are not familiar with, do the research yourself and look for possible scam alerts about the investment being offered. You can also report any fraud, even if it resulted in no money lost, to the CAFC.
TORONTO – Canada’s main stock index was down more than 200 points in late-morning trading, weighed down by losses in the technology, base metal and energy sectors, while U.S. stock markets also fell.
The S&P/TSX composite index was down 239.24 points at 22,749.04.
In New York, the Dow Jones industrial average was down 312.36 points at 40,443.39. The S&P 500 index was down 80.94 points at 5,422.47, while the Nasdaq composite was down 380.17 points at 16,747.49.
The Canadian dollar traded for 73.80 cents US compared with 74.00 cents US on Thursday.
The October crude oil contract was down US$1.07 at US$68.08 per barrel and the October natural gas contract was up less than a penny at US$2.26 per mmBTU.
The December gold contract was down US$2.10 at US$2,541.00 an ounce and the December copper contract was down four cents at US$4.10 a pound.
This report by The Canadian Press was first published Sept. 6, 2024.
TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in technology, financial and energy stocks, while U.S. stock markets also pushed higher.
The S&P/TSX composite index was up 171.41 points at 23,298.39.
In New York, the Dow Jones industrial average was up 278.37 points at 41,369.79. The S&P 500 index was up 38.17 points at 5,630.35, while the Nasdaq composite was up 177.15 points at 17,733.18.
The Canadian dollar traded for 74.19 cents US compared with 74.23 cents US on Wednesday.
The October crude oil contract was up US$1.75 at US$76.27 per barrel and the October natural gas contract was up less than a penny at US$2.10 per mmBTU.
The December gold contract was up US$18.70 at US$2,556.50 an ounce and the December copper contract was down less than a penny at US$4.22 a pound.
This report by The Canadian Press was first published Aug. 29, 2024.
The crypto market has recently experienced a significant downturn, mirroring broader risk asset sell-offs. Over the past week, Bitcoin’s price dropped by 24%, reaching $53,000, while Ethereum plummeted nearly a third to $2,340. Major altcoins also suffered, with Cardano down 27.7%, Solana 36.2%, Dogecoin 34.6%, XRP 23.1%, Shiba Inu 30.1%, and BNB 25.7%.
The severe downturn in the crypto market appears to be part of a broader flight to safety, triggered by disappointing economic data. A worse-than-expected unemployment report on Friday marked the beginning of a technical recession, as defined by the Sahm Rule. This rule identifies a recession when the three-month average unemployment rate rises by at least half a percentage point from its lowest point in the past year.
Friday’s figures met this threshold, signaling an abrupt economic downshift. Consequently, investors sought safer assets, leading to declines in major stock indices: the S&P 500 dropped 2%, the Nasdaq 2.5%, and the Dow 1.5%. This trend continued into Monday with further sell-offs overseas.
The crypto market’s rapid decline raises questions about its role as either a speculative asset or a hedge against inflation and recession. Despite hopes that crypto could act as a risk hedge, the recent crash suggests it remains a speculative investment.
Since the downturn, the crypto market has seen its largest three-day sell-off in nearly a year, losing over $500 billion in market value. According to CoinGlass data, this bloodbath wiped out more than $1 billion in leveraged positions within the last 24 hours, including $365 million in Bitcoin and $348 million in Ether.
Khushboo Khullar of Lightning Ventures, speaking to Bloomberg, argued that the crypto sell-off is part of a broader liquidity panic as traders rush to cover margin calls. Khullar views this as a temporary sell-off, presenting a potential buying opportunity.
Josh Gilbert, an eToro market analyst, supports Khullar’s perspective, suggesting that the expected Federal Reserve rate cuts could benefit crypto assets. “Crypto assets have sold off, but many investors will see an opportunity. We see Federal Reserve rate cuts, which are now likely to come sharper than expected, as hugely positive for crypto assets,” Gilbert told Coindesk.
Despite the recent volatility, crypto continues to make strides toward mainstream acceptance. Notably, Morgan Stanley will allow its advisors to offer Bitcoin ETFs starting Wednesday. This follows more than half a year after the introduction of the first Bitcoin ETF. The investment bank will enable over 15,000 of its financial advisors to sell BlackRock’s IBIT and Fidelity’s FBTC. This move is seen as a significant step toward the “mainstreamization” of crypto, given the lengthy regulatory and company processes in major investment banks.
The recent crypto market downturn highlights its volatility and the broader economic concerns affecting all risk assets. While some analysts see the current situation as a temporary sell-off and a buying opportunity, others caution against the speculative nature of crypto. As the market evolves, its role as a mainstream alternative asset continues to grow, marked by increasing institutional acceptance and new investment opportunities.
