Financial Transactions and Reports Analysis Centre of Canada assists Durham Regional Police fraud and money laundering probe leading to eight arrests

The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) was acknowledged for supporting Durham Regional Police Service’s Project Fletcher investigation into an employee-led fraud that allegedly diverted more than CAD 3 million from a Durham Region business. The police investigation has led to eight arrests, with five additional suspects still sought. Investigators allege the scheme involved diverting employee wages, redirecting payroll funds to other individuals including family members, and submitting fraudulent subcontractor invoices for work not performed. While the suspected conduct may have spanned more than 15 years, the review period covered January 2015 to October 2021 due to limited available financial records; losses during that period alone are believed to exceed CAD 3 million. A forensic audit identified about 270 fraudulent cheques issued to eight subcontractor companies and deposited into 22 bank accounts, alongside alleged laundering using cheque-cashing businesses, multiple financial institutions, and the movement of funds across Durham Region, the Greater Toronto Area, and globally; the investigation involved 27 judicial orders and tens of thousands of financial records. Police reported that the arrested individuals face charges including fraud over CAD 5,000, theft over CAD 5,000, possession of proceeds of crime over CAD 5,000, laundering proceeds of crime, and uttering forged documents. The allegations have not been proven in court.