Yellowknife RCMP have arrested one person in connection with a $250,000 fraud investigation, the police announced on Tuesday morning.
The investigation relates to Northern Sky Film, which was registered as a company in 2017.
Investigators were alerted that one of the business partners who was involved in the business had allegedly misappropriated funds from loans that were obtained through the Business Development Bank of Canada. Investigators learned that loans were taken out to support the development of Northern Sky Film and that these funds, totalling $250,000, were funneled into a personal account before being further dispersed.
The loans were then signed over another business partner who is now responsible for the repayment of the funds. The investigation found that these funds were not used for the intended purpose of developing and sustaining the business, the RCMP contend.
The investigation, undertaken by the Yellowknife General Investigation Section, was initially opened in 2021. “Financial investigations are complex and time consuming and require specialized investigative knowledge,” the RCMP stated. “Charges relating to fraud and money laundering are pending and the investigation is ongoing.”
The name of the accused was not included in the Mounties’ news release.