Capital Financial Trust Perpetrating an Advance Fee Fraud

During an investigation recently conducted by FSCO, it was found that Capital Financial Trust and its related entities may have been involved in perpetrating a scam similar to what is commonly known as an Advance Fee Fraud (AFF). It appears that the entities used "Trust" and "Insurance" in their names in an attempt to defraud consumers. However, these entities are not registered to carry on business as a loan and trust corporation or licensed as an insurance company.

Following a complaint received by FSCO, an investigation found that Capital Financial Trust requested an advance fee of $4,500 US and, in return, promised to pay the client £500,000. The complainant replied via e-mail to this request and was asked to submit a copy of his driver’s licence or passport and his banking information so that the funds could be transferred directly into his account. The complainant did not send any money but when he responded again, he received a third e-mail advising that the funds could not be transferred because $4,500 US was still required to complete the transaction.

It appears that Capital Financial Trust had provided a Toronto address of 161 Bay Street that does not belong to this corporation or any other person listed in the letters.

FSCO has found that consumers, contacted by AFF perpetrators who are often located off-shore, are being directed to deposit up-front fees with fraudulent entities in Ontario in order to access funds promised by the perpetrators of an AFF.

Before providing funds to any entity, it is strongly recommended that consumers ensure the entity contacting them and the entity to which they have been directed to send money are not operating fraudulently. In Ontario, all financial institutions including loan and trust companies, credit unions, caisses populaires and insurers must be licensed/registered with FSCO or with the Office of the Superintendent of Financial Institutions (OSFI). If an entity purports to be a financial institution operating in Ontario, consumers should ensure that its name appears on the list of licensed/registered financial institutions on the FSCO or OSFI websites.