Calgary post-secondary institutions Alberta Student Aid office defrauded of 240000 in student loan scheme

One man has been charged and another is wanted on warrants after an elaborate student loan fraud scheme that ended with the Alberta Student Aid office and several Calgary post-secondary institutions being defrauded of more than $240,000.

Calgary police said they began their investigation in October 2019 after a peace officer with the Advanced Education Special Investigations team contacted them about a number of inconsistencies with several student loan applications, police said in a news release Tuesday morning.

It’s alleged that two men used stolen identities and personal information of 21 people who were already victims of other data breaches and mail thefts to fraudulently apply for student loans from the provincial government. The incidents took place between May 2017 and May 2020, police said.

Read more: International student in Calgary loses life’s savings to scammers

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Police said the men would use the stolen IDs to enrol as students at post-secondary institutions and apply for student aid. Most of the loan applications were done online. Police said loans were approved for amounts of $25,000 to $38,000 for each “student.”

The money was deposited into the bank accounts provided by the alleged fraudsters. Police said the bank accounts were also set up using the same stolen IDs and personal information.

The suspects attended school, posing as students, in order to fulfill the requirements of obtaining the loans, police said. The men would then call the Alberta Student Aid office to request the second loan payout, according to police.

The total payout for each loan was upwards of $27,000, CPS said.

Read more: Canada student loan program to face scrutiny of auditor general

Police said the men attended several schools under a number of different identities to maximize the amount of money they could receive.

“Identity theft and fraud are serious offences that carry significant consequences and impact for the victims,” Staff Sgt. Geoff Gawlinski said.

“Oftentimes victims don’t know they are a victim, even after their finances and credit have been damaged. We are working diligently with the administrative staff of all the affected schools, as well as the Alberta Student Aid loan office, and various financial institutions to ensure robust security measures are in place.”

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Dave Guylenz Mitchell Beauvais, 32, is charged with money laundering, fraud over $5,000, personation, possession of identity documents, uttering forged documents and possession of a controlled substance. He is scheduled to appear in court on Nov. 10.

Kader Dahchi, 30, is wanted on warrants for one count of using a forged document and one count of identity fraud.

The suspects are also alleged to have committed credit card and cheque fraud, as well as obtained mail services fraudulently.

Increase in fraud activity amid COVID-19 pandemic

The Calgary Police Service said it has seen an increase in online fraud and identity crimes throughout the COVID-19 pandemic.

Police said as offices quickly transitioned to remote work situations, there was an increase in identity fraud being committed online.

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In 2019, there were 148 online identity crimes reported to police. Last year, that number soared to 261.

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Police say this isn’t a crime that should be taken lightly. Criminals who steal identities and personal information can be connected to organized crime like drug and human trafficking.

The CPS provides the following tips to people to help protect their personal information:

Do not give any personal or financial information â€" including bank account numbers, credit card numbers and birthdates â€" to someone you don’t know or enter it on unsecure websites.

Regularly monitor financial records such as bank statements, credit reports and bank accounts. If you notice anything suspicious, notify your financial institution immediately.

Report fraud to police or the Canadian Anti-Fraud Centre.

Calgary police did not release the names of the post-secondary institutions that were targeted in the scheme.

© 2021 Global News, a division of Corus Entertainment Inc.

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