Nicholas Pham

Sentencing of four offenders convicted of multiple counts of fraud over $5,000, money laundering, and committing offences for a criminal organization.

The offenders orchestrated a sophisticated, multi-million dollar fraud scheme targeting the Canada Small Business Financing Program and several major banks using sham construction companies.

The court imposed penitentiary sentences ranging from 14 months to 8 years, along with significant restitution orders and fines in lieu of forfeiture.

The defendants were charged with multiple counts of fraud over $5,000, laundering proceeds of crime, and committing offences for a criminal organization in relation to a scheme to fraudulently obtain Canada Small Business Financing Program loans from various banks.

The Crown alleged that the defendants used sham corporations, forged financial documents, and inflated or fabricated invoices for leasehold improvements and equipment to deceive the banks into advancing loan funds, which were then laundered among the defendants.

The court found that Marshall Kazman and Gad Levy orchestrated the scheme and were guilty of fraud, money laundering, and the criminal organization offence.

Ali Vaez Tehrani and Madjid Vaez Tehrani were found guilty of fraud on specific counts but acquitted of the criminal organization charge.

Armand Levy, Ekaterina Chapkina, and Kamyar Ghatan were acquitted of all charges.