40-year-old Township of Severn financial advisor is under arrest after a detailed 16-month investigation. So far disappeared, authorities say he perpetrated fraud on this grand scale. Police in central Ontario have charged Douse with 12 offences. In fact, he is accused of stealing in excess of $1.8 million dollars from his clients.
The arrest on Thursday was a striking turn in the highly publicized case that drew national attention. The fact that authorities started investigating Douse shortly after receiving reports about suspicious financial activities connected to his advisory practice. The months-long investigation uncovered a persistent scheme of fraudulent activity that allegedly cost hundreds of clients millions of dollars in lost revenue.
According to sources close to the investigation, Douse allegedly misappropriated funds entrusted to him by clients seeking financial advice and management services. That investigation remains ongoing. As such, information on the techniques he employed to manifest the fraud have not been released publicly.
The Ontario police have shown their commitment to protecting consumers through these actions. They will appropriately penalise those who betray the confidence that consumers place in them. They encouraged anyone who might have been a victim of Douse’s misconduct to step forward and share their story.
As the case continues, there are substantial and serious legal consequences Douse is facing, with each charge bringing potential 20- to 40-year prison sentences. Legal experts indicate that the severity of the alleged crimes could result in substantial prison time if he is convicted.
Similar to Douse’s arrest, this case illustrates what can happen when the financial sector stays aware and on guard for fraud. Further, clients are directed to use due diligence when choosing an advisor and in actively overseeing how their investments are managed.
