Toronto Man Charged in $6.6 Million Forex Fraud Case

Toronto police have charged Seyed Mohammad Ali Nojoumi, a 46-year-old resident, in connection with a $6.6 million fraud targeting investors in the Toronto area's Persian community. The Ontario Securities Commission (OSC) alleges that Nojoumi and two associates controlling Smart Prime Group diverted funds provided by 28 investors, which were intended for foreign exchange trading, toward personal expenses and payments to other investors. None of the individuals were registered to sell securities in Ontario.

Nojoumi was arrested and released on $5,000 bail with a surety. Court records show that investors, including Mina Amini and her husband, lost savings and loans invested with Nojoumi. The financial losses forced the couple into bankruptcy. "We try to start again, but honestly, it's so hard," Amini said. "The OSC has helped us a lot. Without their help we would have lost our hope."

Court filings indicate that Nojoumi had previously faced fraud charges in February 2019, which were later withdrawn after restitution payments. Despite this, the OSC claims he solicited at least $3.5 million through Smart Prime Group while under the shadow of prior allegations.

Investors reported their losses to the OSC, prompting the criminal charges. One victim, Ensieh Rahmani, said the impact of the alleged scheme was both financial and emotional: "He has to pay all of us. It's not only the amount of money that we have invested, it's the emotional stress we have gone through … you can't put a dollar amount on it." Rahmani added that the frozen accounts affected personal plans, including a home purchase.

The OSC previously issued a public warning about Smart Prime Group in December 2023. Nojoumi has denied the allegations in civil filings, arguing that investor contributions were loans not yet due for repayment. The criminal case is scheduled for a court appearance in Newmarket, Ontario, next month, with victims hoping it will secure restitution and serve as a deterrent to similar frauds.