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Innisfil woman accused of $180,000 bankruptcy scam

Charges have been laid under the Criminal Code and under the Bankruptcy and Insolvency Act



Innisfil resident charged with bankruptcy fraud offences

TORONTO — The Integrated Bankruptcy Enforcement Unit, comprised of the Royal Canadian Mounted Police (RCMP) and the Office of the Superintendent of Bankruptcy (OSB), have charged an Innisfil resident with offences under the Criminal Code and the Bankruptcy and Insolvency Act.

Nageswary Paskaran, age 59, will appear at Old City Hall, Ontario Court of Justice, in Toronto on September 20, 2016, where she will face fraud charges with respect to the bankruptcy process.

It is alleged that Ms. Paskaran, over the course of about two months, fraudulently applied for, obtained and utilized credit totaling about $180,000.00, in the form of cash advances and large retail purchases including gift certificates.

Once in the hands of Ms. Paskaran, the assets were put out of reach of creditors either by gifting them away or disposing of them as part of a scheme to sell the assets for immediate cash. Ms. Paskaran then attempted to cleanse herself of the debt by declaring bankruptcy.

She is additionally alleged to have failed to disclose fully and truthfully to the bankruptcy trustee her financial affairs.

The subsequent investigation resulted in the laying of charges under both the Criminal Code and Bankruptcy and Insolvency Act.

Ms. Paskaran is charged with:

• Fraud Over $5,000.00 contrary to the Criminal Code (two counts)

• Failing to Make Disclosure to the Trustee of All Property Disposed of by Gift or Settlement contrary to the Bankruptcy and Insolvency Act

• Disposing of Property Within One Year Preceding the Date of the Bankruptcy contrary to the Bankruptcy and Insolvency Act

The bankruptcy system is intended for the honest but unfortunate debtor.

However, there are instances where individuals abuse the system by failing to comply with their duties under the bankruptcy process and/or engaging in fraudulent criminal activities.

Offences are identified through detection programs or through complaints from creditors, the trustee-in-bankruptcy or the public.

Since January 2014, the Integrated Bankruptcy Enforcement Unit has charged 32 individuals and four corporations with 154 offences under the Bankruptcy and Insolvency Act and 119 offences under the Criminal Code encompassing liabilities of approximately $107 million.

Should members of the public have any information related to bankruptcy fraud schemes they are urged to contact either the Ontario RCMP at 1-800-387-0020, the Office of the Superintendent of Bankruptcy at 1- 877-376-9902 or anonymously through Crime Stoppers at 1-800-222-8477.