A Toronto woman is facing charges after police said they uncovered a loan scam targeting cottage "flippers."

Police said a woman offered several people an investment opportunity, starting in December 2011. It is alleged that she offered investors short-term, high-interest loans for run-down cottages in the Muskoka area.

The alleged victims were house flippers, who purchase properties with the goal of reselling them for a profit.

The alleged victims would receive interest payments from the woman until they decided to stop investing, or stop referring others, police said. At that time, all payments stopped and no capital was returned to them.

Investigators were told that the woman offered to help investors secure business lines of credit, and charged a fee to prepare business plans to be presented to banks and credit unions.

Victims told police that the plans were never actually prepared, and no loans were obtained. Officers believe the money gathered was used to pay off debts to other investors.

Following an investigation, 51-year-old Jayawathe (Janake) Ukwattege Perera was charged with failure to comply with undertaking and six counts of fraud over $5,000.

Police believe there may be more victims, and ask anyone with more information to call 416-808-7319. Tips can also be left anonymously through Crime Stoppers at 416-222-8477 (TIPS).