A 62-year-old Punjabi-origin man living in Brampton, Ontario, has been arrested by investigators from the Peel Regional Police Fraud Bureau. He is accused of running a $1.4-million Ponzi-style investment scheme that specifically targeted elderly investors.
How the alleged Ponzi scheme worked
According to a Peel Regional Police release, the alleged fraud began in 2017. Several victims invested money with the accused and his company, BLM Canada Corporation. They believed he was a successful mortgage broker.
Investors were told their funds would be used in private mortgages, a condominium development, and a legal trust. They were promised guaranteed returns on their investments.
While some investors initially received payments, police allege the investments were not legitimate. Instead, the payments were funded using money collected from other investors. This created the illusion of returns — a classic sign of a Ponzi scheme.
Targeting elderly investors
The scheme specifically targeted elderly investors, who are often more vulnerable to financial fraud. The total amount involved in the alleged fraud is approximately $1.4 million.
Our Take: A reminder to verify before investing
This case is a stark reminder that Ponzi schemes continue to target vulnerable communities, especially the elderly. The promise of guaranteed returns is almost always a red flag. Investors should always verify the credentials of anyone handling their money and check with regulatory bodies before committing funds. The arrest by Peel Regional Police shows that law enforcement is actively pursuing these cases, but prevention remains the best defense.