1 man charged, another wanted on warrants in elaborate Alberta student loan scheme

CALGARY -

Calgary police say one man has been charged and another is wanted on warrants in connection to a student loan scheme alleged to have defrauded the provincial government out of hundreds of thousands of dollars. 

The investigation was launched two years ago after a peace officer with the advanced education special investigations team under the provincial government contacted police to report inconsistencies with several student loan applications.

Police allege that between May 2017 and May 2020, two men used stolen identities and personal information of almost two dozen people to apply for student loans from the provincial government.

The two men allegedly stole the identities and personal information from people who were already the victims of other data breaches and mail thefts.

"Once the suspects had the victims’ personal information, they would target a post-secondary institution and enrol as students using the stolen identities," Calgary police said in a release.

"They would then apply for student financial aid. Most of the loan applications were conducted online, resulting in loan approvals ranging from approximately $25,000 to $38,000 for each student personation."

"The bank accounts were also opened fraudulently, using the same stolen identities and personal information."

Investigators said the suspects would pose as students and physically attend the school to satisfy the requirements for obtaining the loan payouts.

"Our investigation revealed they used multiple people to attend school, to sit in the seats, to provide the appearance of being an actual student in the class. There was no disguises, per se, but they were able to commandeer multiple people to assist," said Staff Sgt. Geoff Gawlinski of the Calgary Police Service (CPS) economic crimes unit.

To secure the second loan payout, police said the suspects would phone the Alberta Student Aid office posing as the applicable student and request a release of the remaining funds.

The payout for each loan was as high as $27,000.

Police said the suspects would simultaneously attend various schools under a variety of fraudulent identities to "perpetuate the scheme and maximize payouts."

In total, police allege the suspects were able to fraudulently obtain $240,000.

Officials aren't releasing the names of the post-secondary institutions impacted. 

Investigators allege the suspects also committed credit card and cheque fraud.

As a result, police said Dave Guylenz Mitchell Beauvais, 32, has been charged with:

• Money laundering
• Fraud over $5,000
• Personation
• Possession of identity documents
• Uttering forged documents
• Possession of a controlled substance

Beauvais is scheduled to appear in court on Nov. 10.

Kader Dahchi, 30, is wanted on warrants for one count of using a forged document and one count of identity fraud. Police said it's not believed he is in Alberta. 

Police said this case highlights the growing trend of online fraud and identity crimes, which are believed to be increasing throughout the duration of the pandemic.

“Identity theft and fraud are serious offences that carry significant consequences and impact for the victims,” said Staff Sgt. Gawlinski.

“Oftentimes victims don’t know they are a victim, even after their finances and credit have been damaged.

"We are working diligently with the administrative staff of all the affected schools, as well as the Alberta Student Aid loan office, and various financial institutions to ensure robust security measures are in place.”

Police said in 2019, there were 148 online identity crimes reported to the CPS, compared to 261 in 2020.

Investigators are reminding people to protect their personal and financial information by following these safety tips:

• Do not give any personal or financial information to someone you don’t know or enter it on unsecure websites. This includes bank account numbers, credit card numbers, birthdates, and other personal information.
   
• Regularly monitor financial records. Check bank statements, credit reports and bank accounts regularly. If you notice anything suspicious, notify your financial institution immediately. The quicker you spot a potential fraud, the better your chances are of rectifying the situation quickly and avoiding long-term consequences that could affect your credit health. 
   
• Report fraud to police or the Canadian Ani-Fraud Centre. If you have lost money or have had your identity compromised, report it to police by calling 403-266-1234, or to the Canadian Anti-Fraud Centre. By reporting your experience, you are helping law enforcement pursue investigations and warning others. Call
• 911 for crimes in progress or if you are in immediate danger.

Anyone who believes their personal identity may have been compromised is asked to call the CPS non-emergency line at 403-266-1234 or to contact Crime Stoppers anonymously.