Alleged multi-million fraud raised fresh questions on how investors were protected
Police in York Region charged a Toronto man in connection with what they alleged was a multi‑million‑dollar investment scam tied to his company, Equity Line Service Corporation, highlighting ongoing concerns about investor protection in the private capital and alternative‑lending space.
Investigators said the case began in March 2025 when a complainant came forward after investing funds through the suspect in February 2024 and being “promised a return on their investment.” Police alleged the money was not used as agreed.
According to York Regional Police, officers later identified five more complainants who also invested through the same individual.
“It is believed the suspect misappropriated the investment funds from the victims for personal gain,” the service said in a statement.
Police said more than $2.5 million was placed with the suspect, stressing that the allegations has not yet been tested in court.
After what officers described as a lengthy investigation, police charged 40‑year‑old Sergiy Shchavyelyev of Toronto in December 2025 with six counts of fraud over $5,000.
“The investigation is still ongoing and we are putting the male’s photo out because our investigators do believe there are additional victims and encourage them to come forward if they have any similar cases like this one,” Constable Kevin Nebrija told CP24.
Nebrija said officers were “still trying to track exactly where” investors’ money has gone, but believed the funds were diverted for the suspect’s “own financial gain.”
He added that the case served as a reminder that “if something feels too good to be true” investors should “trust your instinct.”
Growing fraud risks in alternative and mortgage markets
Fraud concerns have been mounting in adjacent corners of the mortgage market.
Ontario’s Financial Services Regulatory Authority warned that private lending remains “more susceptible to consumer and investor harm” in a higher‑rate environment, particularly where transparency around fees and suitability broke down.
Regulators in other provinces also flagged scams in which unlicensed middlemen and related firms allegedly used altered land‑title documents and misleading collateral claims to obtain funds from private lenders – often leaving those lenders exposed when the underlying property or security did not match what has been promised.
Mortgage‑related fraud, including application and title schemes, has been on the rise in recent years, with investigators warning that fraudsters often targeted properties with low or no existing mortgage balances.
Higher rates of application‑level fraud among certain borrower segments reinforcie calls for stronger broker due diligence and income verification.
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