Markham Man Charged in Alleged Toronto Investment Fraud: What Potential Victims Need to Know
In March 2026, the Toronto Police Service announced the arrest of a 50-year-old Markham resident in connection with an alleged investment fraud scheme operating out of the City of Toronto. According to police, the accused posed as a private investor and convinced multiple people to hand over money on the promise of returns from supposed vacant-land purchases. Investigators have publicly stated that they believe there may be additional victims who have not yet come forward.
For anyone who has invested with a self-described “private investor” in Ontario over the past several years, this case is a moment to take stock. Here is what Toronto Police have alleged, the charges now before the court, and the steps that potential victims of investment fraud can take to protect themselves and pursue recovery.
What Toronto Police Allege
According to the Toronto Police Service, officers from 11 Division began investigating a fraud matter on 12 August 2024. Police allege that the accused represented himself as a private investor operating under the corporate identity 10000272 Canada Inc., doing business as Norstar Financial Security. Victims were told their money was being invested and would generate returns, with the accused later claiming that those returns were being used to purchase vacant land.
Investigators further allege that no victim ever received the promised returns, and that the accused produced false documents to give the scheme an appearance of legitimacy.
On 3 March 2026, Neilay Modi, 50, of Markham, was arrested and charged with:
- Four counts of fraud over $5,000
- Four counts of possession of proceeds obtained by crime
- Three counts of forgery
Mr. Modi is scheduled to appear at the Ontario Court of Justice, 10 Armoury Street in Toronto, on 14 May 2026. Toronto Police have released a photograph of the accused and have asked anyone who believes they may be a victim, or who has further information, to contact 11 Division at 416-808-1100 or Crime Stoppers anonymously at 416-222-TIPS.
The allegations have not been proven in court, and a charge is not a conviction.
Understanding the Charges
The Criminal Code of Canada treats investment fraud as a serious indictable offence. Here is a breakdown of what each charge in this case means.
Fraud Over $5,000 (Section 380(1))
Under Section 380(1) of the Criminal Code, defrauding any person of property, money, or services valued at more than $5,000 is an indictable offence carrying a maximum sentence of 14 years in prison. Where the total value of the fraud exceeds $1 million, a mandatory minimum sentence of two years’ imprisonment applies. Sentencing courts also consider the aggravating factors listed in Section 380.1, including the magnitude of the fraud, the number of victims, and the use of fraudulent identities or false documents to carry out the scheme.
Possession of Proceeds Obtained by Crime (Section 354)
Section 354 of the Criminal Code makes it an offence to possess property, money, or any item of value that a person knows was obtained through the commission of an indictable offence. Where the value of the proceeds exceeds $5,000, the offence is indictable and carries a maximum sentence of 10 years. This charge is commonly laid alongside the underlying fraud charge to capture the financial benefit allegedly received.
Forgery (Section 366)
Section 366 makes it an offence to knowingly make a false document with the intent that it be acted on as if genuine — for example, to induce someone to part with money on the strength of it. Forgery is an indictable offence carrying a maximum sentence of 10 years. Police allege that fraudulent documents were used here to persuade victims that legitimate investments were being made on their behalf.
Red Flags of Investment Fraud in Ontario
Schemes involving phony private-investor pitches and supposed real-estate or vacant-land holdings remain one of the most common patterns of investment fraud in Ontario. The Ontario Securities Commission and the Canadian Anti-Fraud Centre have repeatedly warned investors that legitimate offerings will almost always show the following indicators — and that the absence of them is a serious warning sign:
- Registration with a securities regulator. Anyone selling investments in Ontario is generally required to be registered. You can verify a person or firm at no cost using the Canadian Securities Administrators’ National Registration Search.
- A formal offering document or prospectus. Real investments come with proper disclosure. A photocopied “agreement” emailed at the last minute is not disclosure.
- Independent custody of investor funds. Legitimate investments do not require you to send money to a personal account or to a numbered corporation you cannot independently verify.
- Transparent, reasonable return promises. Guarantees of high returns with little or no risk are a textbook signal of fraud.
- Audited financial statements. Legitimate operators can produce them on request.
If a “private investor” cannot satisfy these basic checks, or pressures you to invest quickly, in cash, or through informal channels, pause and seek independent advice before transferring any money.
What to Do If You Believe You Have Been Defrauded
If you suspect you have lost money to an investment scheme similar to the one alleged in this case, the steps you take in the first days and weeks matter:
- Preserve every document. Emails, text messages, bank records, signed agreements, deposit slips, and any “investment statements” or receipts you received should be saved and backed up.
- Report to police. In a Toronto matter, that means contacting the Toronto Police Service. Even if the alleged perpetrator is already before the courts, a fresh report can connect your loss to an existing investigation and may make you eligible for victim notifications and restitution orders at sentencing.
- Report to the Canadian Anti-Fraud Centre. The CAFC tracks patterns across jurisdictions and shares intelligence with police forces nationwide.
- Notify your financial institution. Banks can sometimes freeze, recall, or trace recent transfers if the matter is reported quickly enough.
- Speak with a lawyer about civil recovery. Criminal restitution is not guaranteed and, even where it is ordered, does not always result in full repayment. A civil claim is a separate process focused on recovering what you have lost.
Legal Options for Victims of Investment Fraud
Victims of financial fraud in Ontario have more than one avenue of redress. A civil claim — for fraudulent misrepresentation, breach of fiduciary duty, or unjust enrichment — can be pursued against the alleged perpetrator and, in some cases, against third parties who knowingly received or held the proceeds.
Time matters. Under Ontario’s Limitations Act, 2002, civil claims generally must be brought within two years of discovery, although the discoverability rule and certain fraud-specific provisions can affect that calculation. Counsel acting for fraud victims can also seek pre-judgment remedies, including Mareva injunctions to freeze a defendant’s assets and Norwich orders to trace funds through third-party financial institutions — tools that can be decisive when there is still a realistic prospect of recovering money.
Recovery is rarely simple, but acting early significantly improves the odds.
Why This Case Matters
Investment fraud remains one of the largest categories of reported financial crime in Canada. The Canadian Anti-Fraud Centre has consistently identified investment-related fraud as among the highest-loss categories nationwide, and Ontario regularly accounts for a substantial share of the reported losses. Schemes built around small numbered companies and supposed real-estate holdings are a recurring pattern that continues to surface in police investigations across the province.
The Toronto Police investigation in this case is a reminder of two things. First, that these schemes are actively being pursued by law enforcement. Second, that victims, however reluctant or embarrassed they may feel about coming forward, have both criminal-justice and civil avenues available to them, and that the sooner those avenues are pursued, the better the chances of meaningful recovery.
Contact Diamond and Diamond
If you believe you have been a victim of investment fraud or another form of financial crime, the team of lawyers at Diamond and Diamond have experience handling fraud and civil recovery matters across Ontario. Call our 24/7 hotline at 1-800-567-HURT or visit our website to speak with someone now. We offer free consultations and case evaluations. Our team of lawyers represents clients throughout Canada.