Ponzi charges expose industry's KYC challenges

Ponzi charges expose industry's KYC challenges

Ponzi charges expose industry

Police are confirming new Ponzi scheme charges against an industry player -- accused of stashing funds right under the nose of large financial institutions.

Rashida Samji, 60, a former notary public, faces 28 charges, after being arrested at her residence on Nov. 7. She was released on $100,000 bond and 13 bail conditions. 

The RCMP, which began its investigation in February 2012, believes the accused focused specifically on 14 victims who allegedly invested $17 million with her between 2006 and 2012. Police say allegations date back to 2003.

A certified class action suit against her and others also alleges that between April 2010 and January 2012, some $34 million flowed through Samji's accounts with TD rather than being channelled into an investment she hawked to investors.

Samji was suspended on Feb. 7, 2012 by the Society of Notaries Public of B.C. and she submitted her resignation that March. She also faces a civil-action lawsuit in a B.C. Supreme Court.

According to a court document, about 96 investors have launched a lawsuit of $22.7 million, reported the Canadian Press. Samji’s is set to appear in a Vancouver court on Nov. 18.