Ajax residents among six busted in fraud ring

Fraud ring

 Durham -- Property seized by Durham police investigating an Ajax-based fraud ring included a Land Rover, an Audi and a piano. Police seized thousands of dollars in cash and property and are seeking to have several Durham Region properties forfeited under proceeds of crime legislation. March 2010

Credit scam targeted dozens across Canada: police

(By Jeff Mitchell)

 DURHAM -- Three Ajax residents are among six suspects arrested in connection with what police allege was a highly-organized identity theft ring that defrauded dozens of victims across Canada. More than $250,000 in property and cash were seized along with evidence of hundreds of fraudulent credit card accounts when Durham cops, working in conjunction with the OPP's identity crime unit, arrested six suspects on more than 200 charges March 3. Authorities seized two vehicles and will apply to the courts for forfeiture of seven properties in Toronto, Ajax and Oshawa under proceeds of crime legislation, police said.
Cops seized items including a stainless steel refrigerator, tropical plants and a grand piano, allegedly purchased with the proceeds of the scam, said fraud unit Detective Jeff Caplan.
"They were living a lavish lifestyle," Det. Caplan said.
During the investigation Durham police and OPP conducted surveillance on suspects, watching as they made purchases with what cops allege were fake credit cards. One suspect bought a $12,000 watch as officers looked on.
"We had multiple surveillance teams on them all the time," Det. Caplan said.
The investigation, dubbed Project Morgan, was launched when local police received information from financial institutions that an organized identity theft ring had moved from British Columbia, where it had been operating for several years, to the Toronto area.
Investigators allege that prior to that, the ring was active in the GTA. Police had obtained warrants and were poised to make arrests in 2001, but suspects gave them the slip, suddenly relocating to B.C.
"They literally picked up and they were gone," Det. Caplan said. "Whatever they couldn't take with them, they left behind."
It is alleged the fraudsters created false credit accounts in two ways: by stealing the information of real people and having credit cards issued, or by obtaining cards using false identities, usually depicting themselves as recent immigrants.
Once cards were issued, the bandits are alleged to have patiently managed the accounts, making small purchases and paying off balances until credit limits were increased. When the credit limits reached a certain level, the accounts would be drained of cash through advances, paid off with fraudulent cheques and then drained again, police allege.
The operation showed remarkable sophistication, Det. Caplan said.
"The usual fraudster will apply for a card and max it out right away," he said.
Search warrants executed March 3 in Pickering, Ajax, Oshawa and Toronto revealed evidence of a far-reaching fraud network, including numerous fake credit cards and fraudulent accounts, some dating back a decade, police said. Officers seized a 2008 Land Rover and a 2001 Audi A6 along with more than $100,000 in other property alleged to have been obtained by crime, plus $150,000 in cash, including Canadian and U.S. currency, euros and Swiss francs.

Facing multiple fraud-related and criminal organization charges are three residents of Bissland Drive in Ajax: Kuhen Nesha, also known as Sripuvanew Arumagampillai, 37; Ramanan Kenegarajah, also known as Kanagaramanan Kanagarajah, 35; and Anantha Neeranjan, 33. Also charged are three Toronto residents: Hariharan Nesarajah, 38; Rajitha Kanagarajah, 31, and Jeya Prakash Balan, 22.