Winnipeg company files lawsuit claiming Quebec business made fraudulent electronic fund transfers

A company that operates an electronic payment platform is asking a Manitoba court to put a freeze on funds in a bank account because the money is linked to allegedly fraudulent transactions.

Telpay Inc. is also seeking $117,562.96 in damages from the company 9426-9172 Quebec Inc., operating under the name Construction Marachelian, and from the company owner and president, referred to as John Doe in the lawsuit because Telpay thinks he gave them a fake name.

Telpay, based in Winnipeg, offers businesses across Canada a payment service that transfers money electronically. In a lawsuit filed March 12 in Winnipeg, Telpay claims Construction Marachelian and its owner used Telpay to make fraudulent money transfers. 

"Telpay became suspicious of the activity under the transaction agreement and discovered that Doe or Construction Marachelian had provided it with fraudulent information," says the statement of claim filed in the Manitoba Court of King's Bench.

The allegations in the lawsuit have not been tested in court and neither the Quebec defendants nor the Bank of Nova Scotia (Scotiabank), which is also a defendant, have filed statements of defence in court.

The allegations have been reported to police, Winnipeg Police Service public information officer Const. Pat Saydak said.

Wrong address

The lawsuit says around August 2024, Telpay entered into an agreement with Construction Marachelian to use Telpay services to pay suppliers and employees.

But the court document alleges the Quebec company and its owner made a series of fraudulent transactions using Telpay.

Telpay transfers of $20,000 on Dec. 13, $49,774.98 on Dec. 20 and $47,787.98 on Jan. 3, money Telpay believed account holders owed to Doe and his company, went into a Scotiabank account in Montreal.

Telpay says suspicions were raised in January by things like the physical corporate address submitted by Construction Marachelian in its application to Telpay appeared to be the address of a different company.

There were also suspicions when Doe and his company asked for an increase in transaction limits from $15,000 to $55,000. 

"This is often a strategy used when a person is testing the system or trying to gain trust," the lawsuit says.

'Suspicions crystallized'

"Once Telpay's suspicions crystallized into the belief that Doe and Construction Marachelian had provided fraudulent information to establish an account with Telpay and initiate fraudulent payments, it attempted to recall the last payment of $47,787.98 that Telpay had credited to the Scotiabank account," the court document says.

Telpay's request for the recall did not succeed.

Telpay is asking the court to make a declaration that Telpay is entitled to the funds held by the bank in the account. 

The lawsuit says that since Telpay used its own funds to credit the Scotiabank account, Telpay will suffer a loss of the debit amounts — $117,562.96 — if that money is returned to the account holders who dealt with Construction Marachelian.

Telpay wants a court injunction to prevent payment of any of the money to the Quebec company, its president or any third party until the court has dealt with the case.

Scotiabank is named as a defendant because Telpay wants an order "restraining Scotiabank from making any payment of the funds" until there is a further court order about the money.

Telpay wants account holder's name

Telpay also wants a court order directing Scotiabank to provide the name and address of the account holder. The court document says the name that John Doe used in his dealings with Telpay raised concerns that he provided a false identity, so they don't know his actual name. 

Katie Raskina, the Bank of Nova Scotia senior manager of media relations and issues management, said in an email to CBC News, "Scotiabank does not comment on matters before the courts."

CBC contacted Telpay and its lawyer about the case, but lawyer Neil Steen says he has no comment at this time.