Title: Message
Canadian indicted in offshore bank fraud
Last Updated Tue, 27 Aug 2002 18:37:18

MONTREAL - A grand jury in Florida has indicted a former engineer at the Canadian Space Agency on charges he defrauded victims of millions of dollars.

Investigators say Serdar Kalaycioglu was a key player in an investment scam that involved a bank in Grenada in the West Indies.

The Meridian Investment Bank, which the indictment says Kalaycioglu headed, has since had its licence revoked.

Kalaycioglu is living in Montreal and denies the charges. Contacted by CBC, he says he funds projects and helps small companies raise money from banks.

He says he's been doing business for about a year and he doesn't think he's broken the law.

The indictment says undercover FBI agents posed as corrupt securities traders, and that Kalaycioglu offered them $10 million in kickbacks if they invested $40 million with the Grenada bank.

According to a civil lawsuit filed against Kalaycioglu by businessman Larry Schweiger in Florida, Meridian Investment Bank promised at least 70 per cent interest on his investment a month.

But he ended up losing millions of dollars.

Other people may have lost money with the bank, but it's hard to tell because investors are so ashamed of their losses they won't step forward, a private investigator says.

The FBI has declared Kalaycioglu a fugitive from justice, but he hasn't been arrested because nobody has asked Canadian police to do so, says RCMP constable Richard Huard.

Written by CBC News Online staff

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