Two Edmonton men are facing a serious legal storm after investors reportedly lost nearly $6.8 million in what authorities are calling a fraudulent real estate scheme. The alleged scam, which took place between 2018 and 2020, involved promises of high returns and shady business practices that left investors empty-handed.
According to the Alberta Securities Commission (ASC) and the RCMP’s Federal Policing Northwest Region, the investigation was conducted by the Joint Serious Offences Team (JSOT), a specialized unit that targets major securities fraud and related crimes. The probe revealed that the men behind the scheme, identified as 42-year-old Yuvraj Verma and 50-year-old Rohit Sethi, allegedly used several corporations—including Cancom Development Ltd. and Roxdale Gardens Ltd.—to lure investors into a property development project in Edmonton.
Investors were told that 45 percent of their contributions would be set aside for future dividends, with the remaining funds allocated to the development of the property. Authorities, however, claim that no money was actually earmarked for dividends. Instead, the funds were allegedly diverted to other businesses under the control of Verma and Sethi, leaving investors at a total loss.
Adding a bizarre twist, the ASC alleges that the investors were also given lottery tickets with the promise of winning a residential lot in Leduc County. While a winner was reportedly chosen, that individual never received the property, raising questions about the legality and honesty of the promotion. On top of that, the men are accused of tampering with mortgage agreements to their own financial advantage, further deepening the web of alleged deceit.
The investigation was a collaborative effort, with assistance from Edmonton police and the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC). The charges brought against Verma and Sethi are serious and wide-ranging. Each faces seven counts, including fraud over $5,000, uttering forged documents, laundering the proceeds of crime, managing an unlawful lottery, and making or circulating false financial statements.
Both men have been released from custody under strict conditions, which include a prohibition on selling or trading securities on behalf of others. They are slated to appear in Edmonton court on October 1. The case serves as a stark reminder for investors to exercise caution, especially when promised unusually high returns or when dealing with complex corporate structures.
The ASC emphasized that investigations like this are part of a broader mission to protect investors and uphold Alberta’s securities laws. JSOT focuses particularly on repeat offenders, large-scale frauds, and violations of court orders or securities regulations. Their work underscores the importance of vigilance in financial dealings and the consequences of skirting the law.
This case highlights not just the financial impact on victims but also the creative lengths some individuals will go to manipulate trust for personal gain. With millions lost and serious criminal charges on the line, it’s a cautionary tale for anyone looking to invest in real estate or other securities in Alberta—or anywhere, really.
The files were compiled with reporting from Postmedia.
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