Investigators with the York Regional Police Major Fraud Unit have arrested nine people -- including a former Standardbred industry participant -- and laid 42 charges in connection to a criminal organization responsible for defrauding, businesses, banks and private investors of more than $30 million.
In November 2014, York Regional Police commenced an investigation into the accused John Simmonds and his company AC Simmonds Group. Police and the Ontario Securities Commission received several complaints from victims alleging they had been defrauded by Simmonds and his co-accused. In early 2014, the company BLVD Holdings, one of the 80 shell companies registered by Simmonds Group began the process of acquiring a food shipping company in York Region. AC Simmonds was to purchase the company for $10 million from the original owner who had started the company and operated it for the past 45 years.
Once Simmonds took control of the business, he replaced the current system for maintaining the financial records to misrepresent the financial status of the company. Simmonds and his co-accused, systematically submitted fraudulent documentation from one of his many shell companies and business interests to increase the value of the company in order to secure additional money from lenders, creditors and investors. Between April and August 2014, in the 5 months that Simmonds had taken control of the food company, he funnelled large sums of money out of the existing business to himself, the co-accused and his shell companies to the point of bankrupting the food company. The total fraud value at this time is believed to be over $30 million.
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Charged:
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Charges Include:
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Simmonds was a co-owner of Canadian Horse Racing Hall of Famer Wesgate Crown, but has not been licensed as a standardbred industry participant since 2014. He was also the co-founder of the ClubLink golf enterprise with his brothers. He was profiled in the Globe And Mail's Success Stories section in 2014, stating his company A.C. Simmonds and Sons Inc. acquires "profitable businesses for expansion and development.”
According to Global News, Simmonds stated that his company had “probably acquired a couple of hundred companies” over the years with plans to buy in the vicinity of 25 more by the end of 2014.
“I can’t imagine doing anything else. I don’t excel at golf. Pretty much what I excel at is buying, selling and operating businesses,” Simmonds said. "This is my life and I wouldn’t change it for anything.”
Anyone with information or anyone who has had business agreements with BLVD Holdings or AC Simmonds Group are asked to contact Detective Ken Bardai with the York Regional Police Major Fraud Unit at 1-866-876-5423, ext. 6671, Crime Stoppers at 1-800-222-TIPS, leave an anonymous tip online at www.1800222tips.com, or text your tip to CRIMES (274637) starting with the word YORK.
(with files from York Regional Police)
A previous version of this story incorrectly indicated a relationship to another company that Mr. Simmonds does not have any involvement with. SC regrets the error.