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New Insights into Ontario’s Largest Counterfeit Toonie Case
Recent developments have shed light on a major counterfeit coin scandal in Canada, centering around a man from the Toronto area. Global News has uncovered details regarding Daixiong He, a well-off Chinese Canadian businessman, implicated in the nation’s most significant counterfeit toonie case.
According to a newly released investigation report from the RCMP, He, who owned a substantial Chinese supermarket in Scarborough, Ontario, was arrested in May 2022. The report details that he deposited 90 boxes containing 500 counterfeit toonies each into both personal and business accounts at three prominent banks around Toronto throughout 2021. Law enforcement managed to intercept nine of those boxes, amounting to 4,500 fake coins, before they could enter circulation.
The investigation suggests that He was part of a wider “distribution network” involved in distributing counterfeit coins across Canada’s largest city, indicating he likely did not operate alone.
Despite the gravity of the allegations, He navigated the legal proceedings with minimal public attention, entering a guilty plea for possessing and using counterfeit money. He was fined $100,000 but did not serve any jail time, and the related charges against him ceased following his payment.
Interestingly, the Royal Canadian Mint has downplayed its counterfeiting issues, branding them as minor. However, internal communications highlighted in the RCMP report indicated that by June 2021, the Mint recognized significant amounts of counterfeit toonies circulating in the Toronto area, contradicting its public stance.
Since the case first broke, little was known about the details surrounding He and the operation that led to his apprehension. However, using provisions of the Access to Information Act, Global News acquired a 43-page RCMP report documenting He’s actions during the counterfeit coin scheme.
As a businessman, He operated Field Fresh Supermarket Inc., a large Asian grocery establishment, at the time of his arrest. The supermarket, which spans 65,000 square feet in Scarborough, continues to operate, although it is currently under different ownership since He’s departure.
Despite He’s lawyer’s refusal to comment on the case, and a store manager’s directive for reporters to avoid further inquiries, corporate records show a new entity has taken over the operations under a different corporate umbrella as of June 2023.
Details within the heavily redacted RCMP report allude to further involvement from others in the distribution network, highlighting lapses in the coordination of investigations among various agencies during the pandemic. Notably, an earlier arrest related to the case has occurred, though specifics remain obscured due to redactions in the report.
Investigative Findings and Banking Oversights
The RCMP’s investigation was triggered by a request from the Royal Canadian Mint, with the task force quickly identifying He as a suspect following examinations of coins. The Mint’s investigations involved sampling batches of coins deposited in banks, allowing investigators to trace back the coins to specific banking institutions where He deposited large quantities.
Bank records revealed that He had been making substantial cash deposits of counterfeit toonies from January to November 2021. This raised concerns about the counterfeits affecting not only the banks but also local entrepreneurs who depend on these coins for daily transactions, as they might suffer losses if counterfeit coins enter circulation unnoticed.
Experts have expressed concerns that lower-value counterfeit currency can undermine public trust in the Canadian monetary system. While the Mint maintains that the prevalence of counterfeit toonies is minimal, industry voices argue that the distribution of these fakes remains a pressing issue.
Compounding the situation, discrepancies among the banks’ detection capabilities raised alarms. Royal Bank branches frequently recorded significant amounts of counterfeit coins, with specific incidents prompting swift investigations and ultimately leading to He’s arrest after his deposits were scrutinized.
The examination of coins from HSBC Bank illustrated failures in the bank’s ability to identify counterfeits. One box filled exclusively with fake toonies went undetected by tellers, further highlighting systemic issues that allowed counterfeit operations to flourish unnoticed.
Implications of the Counterfeiting Network
As the investigation unfolded, various banks became involved, leading to scattered detection efforts. Notably, one sharp-eyed teller at Bank of Montreal successfully flagged suspicious deposits connected to He, prompting internal reports to FINTRAC, Canada’s financial intelligence agency.
The lengthy timeline from the initial spotting of suspicious coins to actionable intelligence on He’s activities raises questions regarding the efficiency of the response from financial institutions and law enforcement. Despite perfectly timed detection by BMO, other banks failed to respond with the same urgency, allowing He to continue his deposits for months.
Experts have expressed that more timely action could have potentially curtailed further dissemination of counterfeit coins within the community.
As investigations into the toonie counterfeiting scandal continue, questions linger regarding the network’s extent and additional suspects that may remain at large, contributing to the circulating fakes. The case underscores the necessity for heightened scrutiny of financial systems to safeguard against counterfeit operations that threaten the integrity of Canadian currency.
Source
globalnews.ca