Police charge two in $400K gift card fraud scheme in northern Ont.

Two suspects from Thunder Bay have been charged with fraud and other charges in a $400,000 betting scheme involving compromised gift cards being used to pay for Proline bets at gas stations in Sault Ste. Marie and Thunder Bay. (File)

Two suspects from Thunder Bay have been charged with fraud and other charges in a $400,000 betting scheme involving compromised gift cards being used to pay for Proline bets at gas stations in Sault Ste. Marie and Thunder Bay.

Ontario Provincial Police said the suspects used the compromised gift cards to pay for Ontario Lottery and Gaming Proline bets at the gas stations. They would bet on both teams using the gift cards to ensure they would win.

“The OLG purchases and wagers were made at the gas bars using the fraudulently obtained gift cards,” OPP Corporate Communications Bureau spokesperson Gosia Puzio said in an email to CTV News.

Gas stations were unaware

“The gas bars and their employees were unaware the gift cards were fraudulent … The gift cards were used for purchases and OLG wagers.”

The wagers were made at two gas stations in the Sault and one in Thunder Bay.

“The betting pattern was consistent with money laundering, where individuals place large wagers on both sides of a sporting event to ensure minimal gain or loss,” Puzio said.

“Further investigation confirmed that the wagers and purchases at gas bar locations were made using fraudulently obtained gift cards.”

Puzio said police can’t reveal how the suspects obtained the gift cards because that is part of the criminal case against them.

“During the execution of the search warrant, officers seized multiple pieces of identification that did not belong to the accused,” the email said.

“We are not able to disclose the identities of those individuals.”

The investigation was carried out by the OPP’s Investigation and Enforcement Bureau. It began in March when the OLG contacted police about suspicious betting activity at the gas stations.

Suspects are from Thunder Bay

“The investigation revealed that thousands of gift cards had been compromised, resulting in fraud exceeding $400,000,” the OPP said in a news release.

Two men from Thunder Bay have been charged as a result. A 36-year-old is charged with fraud over $5,000, money laundering, conspiracy, identity theft, forgery, uttering a forged document and possession of property obtained by crime.

He remains in custody and is scheduled to appear before the Ontario Court of Justice in Thunder Bay on Sept. 22.

A 45-year-old Thunder Bay man is charged with fraud over $5,000, money laundering, conspiracy, uttering a forged document and possession of property obtained by crime.

He also remains in custody and has a Sept. 23 court date in Thunder Bay.

“This investigation is ongoing,” police said.

Anyone with information on the case is asked to call the OPP at 1-888-310-1122. To remain anonymous, contact Crime Stoppers at 1-800-222-8477 (TIPS) or online.

The OPP’s Investigation and Enforcement Bureau is embedded within the Alcohol and Gaming Commission of Ontario. It is responsible for “criminal, provincial and regulatory investigations to ensure integrity and public safety within AGCO-regulated industries,” police said.