A man from Toronto faces charges for reportedly deceiving 28 investors out of $6.6 million they entrusted for foreign exchange trading. The Ontario Securities Commission (OSC) asserts that Seyed Mohammad Ali Nojoumi, also known as Ali Nojoumi, and two others linked to Smart Prime Group diverted the investors’ funds to cover personal expenses and repay other investors. None of them were authorized to sell securities in Ontario.
Nojoumi, 46, was apprehended and charged with fraud over $5,000 and possession of proceeds of crime, subsequently released on a $5,000 bail with a surety, as indicated by Ontario Court of Justice records. The case came to light in April 2024 when investors who are now part of the charges filed a lawsuit against Nojoumi seeking restitution. Among them were Mina Amini and her spouse, who invested $310,000 from their savings and a loan, leading to their financial distress and bankruptcy.
Legal actions and court documents claim that Nojoumi purportedly collected over $3.5 million through Smart Prime Group while facing prior fraud allegations. A fraud charge laid by Toronto police in February 2019 was withdrawn nearly three years later after Nojoumi reimbursed the alleged victim, according to court records.
Investor lawsuits suggest that Nojoumi possibly utilized the funds to settle the restitution. Records show that Amini and her spouse invested their $230,000 business loan just days before Nojoumi made a restitution payment in December 2021. Subsequently, following the dropped criminal charge, Nojoumi allegedly defrauded an additional $6.5 million from investors within the Persian community in Toronto.
Despite not responding to requests for comments, Nojoumi denied the accusations in his defense statements, claiming the funds were loans not yet due for repayment. The OSC had previously issued a public alert about Smart Prime Group’s lack of registration to sell securities in Ontario.
The criminal charges offer some solace to Ensieh Rahmani, one of the investors instrumental in prompting the charges. Rahmani emphasized the emotional toll and stress endured by the victims besides the monetary loss, advocating for stricter measures against fraudsters to ensure justice and deterrence. She underscored the need for improved fraud policing and prosecution in Canada to safeguard victims’ interests and uphold trust in the justice system.
The ongoing saga highlights the challenges faced by fraud victims and the imperative for accountability in financial misconduct cases. Amini expressed optimism that the legal proceedings would lead to the return of the victims’ funds and serve as a cautionary tale to prevent similar incidents. Nojoumi’s court appearance in Newmarket, Ont., is scheduled for the following month.
CBC Toronto’s comprehensive coverage of fraud underscores the severity of financial scams and the imperative for robust legal responses to protect investors’ interests and maintain public confidence in financial markets.