A pair of Edmonton residents have been charged with running a real estate investment scam that included mortgage fraud.
According to the charges brought against them, Yuvraj Verma and Rohit Sethi used several corporations, including Cancom Development Ltd. and Roxdale Gardens Ltd., to raise approximately $6.8 million from investors between 2018 and 2020 for an Edmonton-based real estate project. In some cases, the duo told investors 45% of funds raised from investors would be held for future dividends and the remainder used for the project.
In reality, no funds were retained for dividends. Instead, Verman and Sethi allegedly diverted the money to other businesses they controlled.
Investors were given lottery tickets for an advertised prize of a residential lot in Leduc County, Alberta. Although a lottery winner was selected, the individual never received the prize. The accused are also alleged to have forged mortgage documents by altering the terms of mortgage agreements with investors to the financial benefit of the accused.
Verma and Sethi have each been charged with the following:
- fraud over $5,000 contrary to section 380(1)(a) of the Criminal Code for defrauding the public;
- making and circulating a false prospectus, a statement or an account contrary to section 400 of the Criminal Code;
- managing a ticket scheme contrary to section 206(1)(d) of the Criminal Code (two counts);
- uttering forged documents contrary to section 368(1)(a) of the Criminal Code; and
- laundering the proceeds of crime contrary to section 462.31(1)(a) of the Criminal Code (two counts).
The accused were released on conditions, including a ban on selling or trading securities on behalf of others and contacting certain investors. Their first appearance in court is scheduled for Oct. 1.
