The incorporation and operation of criminally controlled companies in Canada

Abstract

Examines how financial proceeds of entrepreneurial crime are disbursed throughout Canada’s legitimate economy, focusing on the use of criminally controlled companies as money laundering vehicles. Outlines the design of the research, including data sources, sampling method, data collection, and limitations of the data; the main source of primary data are the proceeds of crime cases taken from the files of the Royal Canadian Mounted Police. Discusses the findings: drug trafficking is the largest single source of criminal proceeds. Moves on to the criminal companies involved: these have a long history in North America, and while they exist for various reasons, money laundering is one of their main functions. Details a case study, that of Gary Hendin, an Ontario lawyer who laundered around CDN12 million in drug money during the late 1970s and early 1980s. Indicates the types of companies used and their methods for laundering money: nominees as owners or directors, a company hierarchy, fake loans or investments, selling a company, buying a company already owned by a criminal enterprise, fictitious business expenses and false invoices, fictitious salaries, and offering shares in a public company.

Citation

Schneider, S. (2003), "The incorporation and operation of criminally controlled companies in Canada", Journal of Money Laundering Control, Vol. 7 No. 2, pp. 126-138. https://doi.org/10.1108/13685200410809832