A Thornhill, Ontario man, Seyed Mohammedali Nojoumi, also known as Ali Nojoumi, is facing serious allegations of orchestrating a Ponzi scheme, as revealed by lawsuits and records scrutinized by CBC Toronto.
Nojoumi had faced a criminal fraud charge by Toronto police in February 2019. However, almost three years later, the Crown prosecutor reportedly agreed to drop the charge if Nojoumi paid back the alleged victim in the case. Emails disclosed in Ontario’s Superior Court of Justice suggest that Nojoumi complied with this condition.
Nevertheless, lawsuits from investors now claim that Nojoumi likely used their investments to fund this restitution. Following the dropping of the criminal charge in early 2022, investors allege that Nojoumi proceeded to defraud another $6.5 million from individuals within the Greater Toronto Area’s Persian community, with total claims in the lawsuits reaching $10 million.
The investors assert that the absence of a conviction enabled Nojoumi to perpetrate a fresh round of fraud, targeting a new set of victims within the Persian community. Norman Groot, a Toronto fraud-recovery lawyer representing most of the investors, highlights concerns raised regarding the source of funds for Nojoumi’s restitution payments.
Despite denials from Nojoumi, investors claim they were persuaded to invest substantial sums based on trust and the promise of guaranteed returns. Allegations indicate that investments were intended for what appeared to be a sophisticated foreign exchange operation managed by Nojoumi’s purported investment company, Smart Prime Group.
Investors allege that Nojoumi failed to deliver on promised returns, leading to financial distress for many. Some investors, like Maryam Alavinasab, are now forced to sell assets to cope with losses.
Nojoumi’s defense maintains that the investments were loans and that the funds aren’t due for repayment until later this year. However, investors contend that they were misled into believing they were engaging in legitimate investment opportunities.
The situation underscores broader concerns about fraud prosecution in Ontario, with many cases ending in withdrawal or stays of charges, as revealed by a CBC Toronto investigation. Despite reporting Nojoumi to the Ontario Securities Commission (OSC), investors are yet to see tangible action.
Through their lawsuits and public statements, investors aim to bring attention to their plight and prevent further victimization within their community.