Former head of BioNorth Technology Group, Frank Benincasa, is facing fraud and other charges following a years-long investigation by the Ontario Provincial Police’s anti-rackets branch. The investigation began in 2018 after several fraud complaints were made in relation to a $6 million syndicated mortgage investment into BioNorth Technology Real Estate.
Syndicated mortgage investments (SMIs) are a way for companies to raise development money by pooling funds from multiple investors. Benincasa, 59, is accused of using forged documents to convince investors that their investment was guaranteed, leading to charges of fraud over $5,000 and using a forged document.
The case was referred to the anti-rackets branch in 2019 due to its complexity and size. Acting Det. Sgt. John Armit explained that these types of cases can take years to investigate, especially when they involve multiple jurisdictions.
In a related case, mutual fund dealer Leszek Dziadecki was found guilty of misconduct for promoting the BioNorth SMIs to Polish investors, resulting in over $1 million in losses for investors.
The Canadian Anti-Fraud Centre reported that Canadians lost over $568 million to fraud in 2023, with only a small percentage of victims reporting the crime. Anyone who suspects they have been a victim of fraud is urged to contact their local police, the OPP, or Crime Stoppers. Resources on scams and fraud can be found on the Canadian Anti-Fraud Centre’s website.
