Two people have been arrested for their alleged involvement in what police are calling a "romance and investment" Ponzi scheme that saw eight female victims lose approximately $400,000.
Investigators with York Regional Police say the suspect found his victims on online dating sites or local bars. They say he told them he was a financial expert and after dating the women for a short period of time, he would ask them for money.
In one incident, police say he befriended a woman who he met several times at an Aurora, Ont., bar before convincing her to invest more than $50,000. He allegedly told her that he could generate significant short-term returns for her investment.
Police received a tip about that incident last April, and launched an investigation into the suspect.
"He described himself as Richard Gere from the movie 'Pretty Woman,'" Det. Kevin Bardai told CTV Toronto. "(Gere's character) lived a lifestyle (in that film) and he wanted to basically have the same lifestyle."
A Ponzi scheme sees an individual or organization pay returns to investors that are received from newer investors.
Police say the other seven victims are also believed to have invested approximately $50,000 in the alleged scheme. One woman, who did not want to be identified, said she met the suspect on an online dating site in 2012. She alleges that over a two-year period, she gave him more than $67,000.
"I'm just feeling a lot of mixed emotions right now," she told CTV Toronto. "More numb than anything else. I feel like it's a nightmare."
Salim Damji, 45, was arrested in Stouffville on Monday. Police say one of his victims became suspicious of him and searched his name online.
"She just Googled his name and got all this information," Bardai said. "She realized, 'Oh my God, what have I just done?'"
Damji was previously sentenced more than 10 years ago to six years in prison for his involvement in a tooth-whitening fraud scheme. Police say nearly 4,000 victims lost approximately $77 million.
Police also allege Damji was working with a female accomplice who assisted him in the scheme. He is charged with:
- Fraud over $5,000
- Fraud over $5,000 Public
- Laundering Proceeds of Crime
- False Pretences
Tatiana Krainova, 39, of Whitchurch-Stouffville is charged with:
- Fraud over $5,000
- Fraud over $5,000 Public
- Laundering Proceeds of Crime
Damji is also known under the aliases Sal Palermo, Sal Darsee, Santos Palermo, Rico Palermo and Santos Salvator.
Anyone with information can contact Det. Ken Bardai with the York Regional Police Major Fraud Unit at 1-866-876-5423, ext. 6671, Crime Stoppers at 1-800-222-TIPS, leave an anonymous tip online at www.1800222tips.com, or text your tip to CRIMES (274637) starting with the word YORK.
With a report from CTV Toronto's John Musselman
