Loan-fraud accused in court

David Scenna, 38, and 12 other men are accused of defrauding Industry Canada’s small business loan program of $4 million. The RCMP alleges that at least 16 loans — $250,000 at a time — were doled out to a loosely associated group of GTA businessmen…Scenna figures prominently in a second, more recent, group of loans totalling $16 million given out by the Business Development Bank of Canada. The BDC alleges a former senior manager of the federal bank took kickbacks in those cases to approve loans. Lavish trips overseas, restaurant parties and shopping sprees followed.

The Toronto Star
November 27, 2010

Loan-fraud accused in court
$4 million scammed from Industry Canada, RCMP says
Kevin Donovan

A case the RCMP calls an “elaborate fraud” on the federal government will resume in the new year.

Lawyers and some of the 13 accused men appeared in Brampton court yesterday. The Crown provided them with disclosure documents and promised they would find out more about the case against them in the next two weeks.

David Scenna, 38, and 12 other men are accused of defrauding Industry Canada’s small business loan program of $4 million. The RCMP alleges that at least 16 loans — $250,000 at a time — were doled out to a loosely associated group of GTA businessmen.

Scenna, the alleged mastermind, went on a spending spree that included lavish parties at Toronto’s Muzik nightclub, high-profile charity functions, Porsches and Mercedes cars; and thousands of dollars paid to high-end escort agencies. One series of Scenna’s credit card bills for hookers was $38,000, according to documents found by a Royal Canadian Mounted Police investigation.

At Brampton court yesterday, Scenna did not appear. Lawyer Mychajlo Figol represented him and told the Star outside the courtroom that “I don’t make comment before trials.”

Of the remaining 12, nine appeared either on their own or represented by a lawyer. Three men did not show up. The case has been put over until Jan. 21, when the court hopes to arrange a date for pretrial motions.

Scenna figures prominently in a second, more recent, group of loans totalling $16 million given out by the Business Development Bank of Canada. The BDC alleges a former senior manager of the federal bank took kickbacks in those cases to approve loans. Lavish trips overseas, restaurant parties and shopping sprees followed.

The Star’s ongoing investigation shows that Scenna, who began obtaining loans in the early 2000s, had bankruptcy and a poor credit rating in his past.

Kevin Donovan can be reached at 416-312-3503 or ac.ratseht|navonodk#ac.ratseht|navonodk

http://www.thestar.com/news/article/897498--business-loan-fraud-case-put-over-to-new-year


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