Robert Allen, Daniel Carrasco, of the Vinclum Group steal $1.5m from investors expecting $16m profits Ontario

Two financial services professionals say they were cheated by Robert Allen, alongside Daniel Carrasco,  and several other employees of the Vinclum Group, who claimed vast profits could be made on investments. Investors were allegedly conned of more than $1.5m, in a scheme which was to generate $16m, but reportedly did not exist.  

One director says he was cheated of $250,000.00, which was to leverage $16m in funds through a series of transactions. A broker also wired an additional $1.25m, which had been invested into the scheme by six of his clients. The scheme involved the acquisition of Documentary Letters of Credit (DLCs).    

A DLC is a financial instrument, often issued by banks to facilitate international transactions. Typically, a bank temporarily holds a given sum on behalf of a buyer. A DLC can be used to secure a loan against future income, at a ratio as high as 50%. The accused reportedly had links to international banks that would enable the bonafide scheme.

When a $4m DLC was monatized, this was expected to make a profit of $2m. This sum would be used to buy a second DLC worth $32m, which would make $16m in cash, which would be shared among the alleged perpetrators and the investors. 

The victims participated in the scheme with the understanding that DLCs would be purchased and redeemed for profit. But no DLCs were acquired under the scheme, the investors allege.  

The Vinclum Group made numerous promises that the funds would be refunded to the investors, who say they are yet to receive their money. The claimants have sought an asset freezing injunction while the accused are probed over the allegations of fraud.