100% CONFIDENTIAL SUPPORT:

Two Oakville Men Accused of Take-Over Fraud

Share This Post

Share on facebook
Share on linkedin
Share on twitter
Share on email

oakville fraud

Two men from Oakville are currently facing charges of fraud and forging documents related to taking over ownership of an Etobicoke bakery. The two men allegedly did not pay but ended up getting ownership of the bakery through fraud.

What the Police Says

According to Toronto police, the two men approached the owners of the 36,000 square-foot bakery in Etobicoke and agreed to buy the building for a certain amount. The men, operators of Easton Pharmaceuticals, are alleged by the police to have no intention to pay and was found out to have altered attorney letters to make it look like they are truly buying the building. The men failed to transfer the payment after the ownership was transferred.

51-year-old Vincent DeMasi of Toronto and 49-year-old Evangelos Karayannopoulos of Oakville were arrested and charged in late October 2019 for fraud and forging documents. According to the police, Evangelos Karayannopoulos also goes by the name Evan Kerras.

Easton Pharmaceuticals is based in Toronto and describes itself as a specialty pharmaceutical company on its website. The company claims it developed and owned FDA-approved drugs for wound healing previously. Current stocks are traded on OTC Pink exchange. The company?s trading rights have been suspended by the U.S. Securities and Exchange Commission on November 20, 2019.

Caught Off-Guard

Both DeMasi and Karayannopoulos claim to have been caught off-guard by the charges against them, according to an email addressed to the Star. Karayannopoulos claims that their legal counsel has no knowledge of any request for information by the Toronto Police and was equally appalled and shocked about the charges and allegations against DeMasi and Karayannopoulos. He further said that the true victims will be revealed after investigation and that those responsible will be held accountable for their actions.

How Events Unfolded

Easton Pharmaceuticals announced in April 2019 that they?ve acquired the bakery, Supreme Sweets Inc. and called it a strategic acquisition for Easton so that the company can enter the Cannabis Edibles market to create premium Cannabis Edibles for various needs. The property is located in Brockhouse Rd. in Etobicoke.

In a suspension order issued in November 19, 2019, The SEC found that there are questions regarding the adequacy and accuracy of the information about the company?s recent public announcements about the acquisition as well as about the company?s operations, specifically the press release dated April 24, 2019 which stated that Easton Pharmaceuticals completed its acquisition of Supreme Sweets Inc. In summary, there are a lot of data and claims that do not match up, including claims of operating fully functional video slot games for release to American Casinos in the near future.

High-Value Fraud

Police are worried that there might be more victims. Toronto Police?s Financial Crime Unit found out about the high-value fraud, with DeMasi and Karayannopoulos taking possession of a 36,000 square foot building along with about $9 million worth of industrial machinery without having a single cent exchanged on the closing date. Toronto Const. Victor Wong urges anyone with information to call the police at 416-808-7373.

Were you or anyone you know a victim of business fraud? Let our private investigation services help you! Contact us at Haywood Hunt and schedule an obligation-free consultation to find out what we can do for you.

 

 

 

More To Explore

Blog

A Closer Look at Corporate Fraud: Part 2 (Duplicate Payment Scams)

In our continuing series examining frauds that target corporation, we will examine a scam known as duplicate payment fraud. Duplicate payments may not always be attributed to fraud. In many cases, the duplicate payment may be caused by poor administration of a company’s master vendor file. Or a duplicate payment could be initiated through a billing error by the company who is owed the money. These errors are often detected and usually reconciled through communication between the vendor and the customer.

Blog

What You Can Do to Protect Yourself from Online Romance Scams in 2021

Online romance scams have been prevalent since the dawn of the internet age. Each year, hundreds of thousands of individuals from all walks of life fall victim to online dating scams. In fact, the U.S. alone recently reported that their annual tally on online romance scams reached $230 million.