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Our cash for their partying?

Millions of dollars in federal small business loan money was allegedly blown on prostitutes, booze, partying and fast cars.

Millions of dollars in federal small business loan money was allegedly blown on prostitutes, booze, partying and fast cars.

A Toronto Star investigation shows the department managing the program — Industry Canada — allows banks to loan money with lax or no controls.

In one case, at least 16 loans — more than $4 million doled out $250,000 at a time over eight years — were given to a loosely associated group of GTA businessmen whose leader’s past included bankruptcy and a poor credit rating.

The businessmen defaulted on each loan, but banks always approved another. Taxpayers’ money refunds banks when loans go into default.

David Scenna, the alleged mastermind, went on a spending spree that included lavish parties at Toronto’s Muzik nightclub, high-profile charity functions, Porsches and Mercedes cars; and thousands of dollars paid to high-end escort agencies.


One series of Scenna’s credit card bills for hookers was $38,000, according to documents found by a Royal Canadian Mounted Police investigation.

 
 
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