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 was sparked by several fraud complaints in July 2018 related to a $6 million syndicated mortgage investment into BioNorth Technology Real Estate.
Syndicated mortgage investments (SMIs) allow companies to raise development money by pooling funds from multiple investors. In this case, Benincasa, 59, is accused of using forged documents to deceive investors into believing their investment was secure.
Acting Det. Sgt. John Armit explained that the case was referred to the anti-rackets branch in January 2019 due to its complexity and size. Benincasa was arrested on March 13, 2024, and is scheduled to appear in court on April 30.
In a related case, mutual fund dealer Leszek Dziadecki was found guilty in 2023 of misconduct for promoting the BioNorth SMIs to Polish investors. Dziadecki managed to raise over $1 million from investors, who ultimately lost all their money when the investment failed to repay them.
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 crimes. Anyone who suspects they have been a victim of fraud is encouraged to contact their local police, the OPP, or Crime Stoppers.