Edmonton, Alberta – The Edmonton Police Service has charged an Edmonton man with 22 counts of fraud in relation to a Ponzi scheme valued at $5.5 million.
Between January 2009 and June 2017, Timothy (Tim) Ray Carruthers, 59, using the company name Wakina Consulting Inc., is alleged to have facilitated 257 fraudulent bridge mortgage loans using publicly available documentation from real homeowners. The homeowners, who were unaware of the fraudulent mortgage loans, were allegedly said to be taking out bridge mortgage loans while selling their current residence and purchasing a new residence. Investors were allegedly promised administration fees and monthly interest on their investment.
The scheme was brought to the attention of EPS when an investor reportedly did not receive the agreed-upon funds, began looking into the contract, and uncovered fraudulent documentation.
Following a two-year investigation, the EPS Fraud Investigations Unit has charged Timothy (Tim) Ray Carruthers, 59, with 22 counts of fraud over $5,000.
“Typically, people who are capable of committing frauds at this level understand the business, so it makes them very believable,” says Det. Linda Herczeg with the EPS Fraud Investigations Unit. “When you’re investing with someone, you want to make sure that they are properly licensed to be selling the products they are presenting. Check their credentials, read the fine print, verify the documentation, ask questions. If it looks too good to be true, it probably is.”
Police believe that Carruthers may have defrauded others, and are releasing his photo to encourage any additional complainants to come forward. Complainants can contact the Edmonton Police Service at 780-423-4567 or #377 from a mobile phone. Anonymous information can also be submitted to Crime Stoppers at 1-800-222-8477 or online at www.p3tips.com/250.
Edmonton Police Service
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