Durham Police $3 Million Fraud Investigation has resulted in multiple arrests after a long-term financial crimes probe uncovered a major fraud scheme involving a Durham Region business.
The investigation was led by the Durham Regional Police Service Financial Crimes Unit and focused on a 54-year-old woman who worked as an Operations Manager for ServiceMaster in Durham Region.
Police say financial irregularities were discovered during a corporate restructuring, prompting an internal audit and a report to police in November 2021.
Investigators allege the suspect orchestrated a sophisticated fraud scheme involving the diversion of employee wages, the redirection of payroll funds to other individuals including family members, and the submission of fraudulent subcontractor invoices for work that was never performed.
Authorities believe the fraud may have occurred over more than 15 years, although investigators were able to review financial records from January 2015 to October 2021. During that six-year period alone, losses to the company are estimated to exceed $3 million.
A forensic audit revealed approximately 270 fraudulent cheques issued to eight subcontractor companies and deposited into 22 bank accounts.
The Durham Police $3 Million Fraud Investigation also uncovered extensive money-laundering activity involving cheque-cashing businesses, multiple financial institutions, and financial transfers across Durham Region, the Greater Toronto Area, and internationally.
Police say eight suspects have been arrested and charged, while five additional suspects remain outstanding. Investigators are asking the public for help in locating the remaining individuals.
