The police and securities regulator has hand delivered warning letters to suspects
Ten suspected money mules have been handed warning letters by the BC securities regulator and Canadian police.
In a joint operation, teams from the BCSC and the Pacific Region RCMP Federal Policing program’s Integrated Market Enforcement Team (IMET) warned those suspected of handling money for criminals who target BC residents with offshore investment scams.
The letters informed the potential money mules that they could face criminal charges for possession or laundering the proceeds of crime. They could also be charged under BC’s Securities Act if the funds they are transferring are linked to investment fraud schemes.
The BCSC acted on information that those warned had sent or received money or cryptocurrency obtained from victims of investment fraud.
“Money mules are either knowingly or unknowingly helping criminals launder their illicit funds. We are collaborating with the RCMP to crack down on this issue, warning money mules that they cannot avoid liability by being wilfully blind to the source of money,” said Lori Chambers, Deputy Director of Enforcement, B.C. Securities Commission. “We’re also educating the public, because it’s crucial for people to be aware of these schemes to protect themselves from becoming an unwitting accomplice to fraud.”
Unaware of criminality
Those who are persuaded to become money mules may be enticed by an offer of part of the transferred funds as payment or they may be convinced by a criminal’s fake identity and sometimes job offers, or online friendship or romance.
They may therefore be unaware that the money they are transferring is for criminals, believing that they are helping a friend or romantic partner. They could also be victims of an investment fraud scheme themselves.
“As organised crime groups increasingly target the most vulnerable members of our society through investment scams, the RCMP Financial Integrity program has partnered with the B.C. Securities Commission to combat this crime trend through a multi-pronged strategy,” explained Superintendent Adam MacIntosh, Officer in Charge of the Financial Integrity program- Pacific Region RCMP Federal Policing program. “In addition to conducting a series of joint enforcement actions against these criminal networks, we are working to strengthen our first line of defence by providing education and resources to members of the public, along with strategies to avoid becoming a victim of fraud.”
