FSCO Warning Notice - August 1, 2006

Central Trust and Related Entities Perpetrating an Advance Fee Fraud

During an investigation recently conducted by FSCO, it was found that Central 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.

Following a complaint received by FSCO, an investigation found that Central Trust (Central) requested an advance fee of $600 for a $10,000 loan to cover loan insurance that was to be provided by an entity referred to as First Choice Insurance Group (First Choice). It appears that Central had provided a Toronto address of 6200 King Street that does not exist. It also appears that the complainant was referred to a company called Ontario Business Registration to obtain references for Central and First Choice. Further investigation linked the entities to TBA Lending which, on its website, refers to First Choice. There has been no additional information found on any of the above companies involved in this matter, and all their phone numbers are no longer in service. The website for TBA Lending has been shut down.

Please note that the First Choice Insurance Group named in this matter is not related to a legitimate company by this name located in the state of Michigan.

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

The entities under investigation include:

Before providing funds to any entity, it is strongly recommended that consumers ensure both 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 and caisses populaires 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.