Two Ontarians collectively lost around $90,000 after investing in private lending opportunities that turned out to be fraudulent. Both were promised high short-term returns but never recovered their original capital.
A retiree in Ontario invested $30,000 of her life savings in what she believed was a legitimate landscaping company, after a friend’s referral. She was told she’d get her principal back in two months plus interest. That money never returned.
In another case, an individual invested $60,000 in a private real estate lending deal, receiving payments for around a year before the company abruptly ceased payments and claimed financial hardship. He has since received nothing further.
These scams often involve fraudsters posing as private investment firms, using high‑pressure tactics and promising unrealistic returns in short time spans. Victims are often discouraged from asking questions and are pushed to invest quickly, with false assurances of legal guarantees or collateral.
Authorities urge residents to verify whether any investment firm is registered with the Canadian Securities Administrators (CSA) and to consult licensed professionals before investing.
