In a surprising turn of events, a Toronto-area man, That Daixiong He, 69, hailing from Richmond Hill, Ontario, has been hit with a hefty $100,000 fine after quietly pleading guilty to charges of possession and fraudulent use of thousands of counterfeit $2 coins. The bizarre saga unfolded as Mr. He admitted guilt during a brief court appearance in Newmarket on Dec. 9, 2022, for injecting fake toonies into Canada's banking system.
The fraudulent activity involved sizable deposits into multiple personal accounts at BMO, HSBC, and RBC, catching the attention of authorities. Despite facing a maximum sentence of 14 years in jail, Mr. He managed to avoid imprisonment. Ontario General Court Justice Amit Ghosh imposed the substantial fine after Mr. He confessed to breaching two sections of the Criminal Code.
The charges related to "uttering and possessing" counterfeit $2 coins between Jan. 4, 2021, and Nov. 12, 2021, "without lawful justification or excuse." A second charge of possessing fake toonies was stayed by the Crown after Mr. He settled his fine via electronic bank draft.
The unusual case gained notoriety after a flood of fake toonies, dubbed "Camel Toe Toonies," circulated in Greater Toronto during the summer of 2020. The peculiar moniker originated from the outsized toes on the polar bear's right paw featured on the counterfeit coins. Mr. He's arrest in May 2022 marked the culmination of an investigation by the RCMP’s Trans-National Serious and Organized Crime unit in Toronto, led by Supt. Ann Koenig, with collaboration from Fintrac, the federal government’s financial intelligence agency.
Defence counsel Thomas Richards revealed that Mr. He had possessed a substantial quantity of fake toonies but did not disclose the exact number. Richards added that his client had divested himself of all counterfeit coins a few months prior to his arrest. Previously undisclosed details emerged, exposing how up to 40,000 fake toonies infiltrated the Canadian banking system through simple deposits at three Toronto-area banks. Despite the fine, the incident raises questions about the vulnerabilities in the financial system that allowed such a sizable quantity of counterfeit coins to circulate unnoticed.
The intricate investigation into the surge of counterfeit two-dollar coins, ominously dubbed "Camel Toe Toonies," began in July 2021 when the Royal Canadian Mint uncovered a disturbingly high prevalence of fakes in their statistical sampling of large coin batches. As revealed in court evidence, this prompted the RCMP to initiate a probe into the illicit circulation of counterfeit coins in Toronto.
Securing production orders to compel banks into divulging account and transaction details, investigators honed in on Daixiong He. The suspect, identified as a prolific depositor of fake toonies, allegedly made multiple substantial bank deposits of counterfeit two-dollar coins between Jan. 4, 2021, and Nov. 12, 2021.
Disturbingly, prior to the police and Mint's interception of confirmed counterfeit coins, it was discovered that Mr. He had deposited approximately $80,000—equivalent to around 40,000 suspected fake toonies. This staggering revelation solidified the case as the largest fake toonie operation in Canadian history.
While Mr. He did not explicitly confess to crafting the infamous "Camel Toe" fake toonies, he admitted culpability based on the circumstances of how he acquired the coins—an undisclosed detail that led him to exercise inadequate caution during their deposit. Lawyer Thomas Richards, representing Mr. He, dismissed any affiliation with organized crime, asserting that there was no evidence tying his client to such groups.
A mysterious figure looms in the shadows of this intricate tale—an individual of interest allegedly involved in the illicit operation. This person, known to the police and operating in Canada without valid documentation, adds a layer of intrigue to the narrative. Richards contends that the true essence of the story lies with this unnamed individual, a known criminal whom authorities were unable to remove due to expired travel documents.
While Richards refrains from disclosing the identity or nationality of this person, he emphasizes, "That's the real story." The undisclosed individual, despite being a known criminal, has not faced charges, raising questions about the complexities of pursuing justice in cases that transcend borders and bureaucratic hurdles.
In a complex twist to the saga of counterfeit two-dollar coins circulating in Toronto, a person without legal status in Canada became entangled in the legal web. Detained by the RCMP and Canada Border Services Agency (CBSA), attempts were made to deport this individual. However, the absence of a passport or alternative travel document, coupled with uncooperative authorities in the person's country of origin, thwarted deportation efforts. Consequently, the CBSA was compelled to release the person, who now remains at large within Canada.
The CBSA has the authority to detain individuals without legal status for varying durations, from 48 hours to 30 days, to prepare deportation proceedings. Extensions beyond this period require approval from a federal immigration tribunal. Lawyer Thomas Richards shed light on the frustrating predicament, stating, "He’s out there, the police know he’s a criminal, but they can’t do anything.
In response to inquiries about the individual at large and potential links to the Toronto fake toonie case, an RCMP spokesman neither confirmed nor denied, stating, "Only in the event that an investigation results in the laying of criminal charges, would the RCMP confirm the identity of individual(s) involved. Therefore, I cannot provide further information.
Richards, protective of his client's privacy, refrained from divulging additional details about Daixiong He, including his occupation, or the unnamed person of interest. Emphasizing his client's right to anonymity, Richards maintained a cautious stance.
The origin of the counterfeit coin crisis dates back to July 2020 when coin collectors in the Greater Toronto Area raised alarms about a deluge of fake toonies. The Royal Canadian Mint, beginning its sampling of bank-supplied coin boxes in the summer of 2021, aimed to assess the extent of the counterfeiting operation. However, the Mint has remained tight-lipped about the results of its coin sampling efforts, leaving collectors to conduct their own amateur investigations. Numismatic enthusiasts, examining boxes of toonie rolls, reported a one percent counterfeit rate, uncovering five fakes in every box of 500 coins.
As legal complexities intertwine with the pursuit of justice, the shadow of counterfeit toonies looms large, underscoring the intricate challenges in dismantling such criminal operations.
The inundation of counterfeit two-dollar coins in the Greater Toronto Area (GTA), an issue that subsequently permeated Canada and persists to this day, prompted the Royal Canadian Mint to devise a specialized plan to address what it termed "a contamination in the circulation coinage system." An internal Mint document, disclosing its provisions, sheds light on the meticulous approach adopted to manage the unexpected surge of fake toonies.
This strategic initiative involves collaboration with an entity known as the Canadian Circulation Coin Distribution System, evidencing a joint effort to combat the "contamination" of the Canadian circulating coin environment once counterfeit coins are identified. Access to Information documents further unveils a policy guide delineating the precise measures employed in managing such a crisis.
The internal Mint document outlines a systematic approach to address the counterfeit coin "contamination" in Canada. It emphasizes that the "magnitude (size) of the contamination informs the course of action." This strategic consideration underscores the Mint's adaptive response, tailoring its efforts based on the scale of the counterfeit coin influx.
As the challenge persists and counterfeit toonies continue to circulate, the Mint's strategic approach remains a critical component in mitigating the impact on the Canadian circulating coinage system. The ongoing effort to navigate this deluge of counterfeit coins reflects the Mint's commitment to upholding the integrity of Canada's currency and financial ecosystem.
In grappling with the persistent influx of counterfeit two-dollar coins, the Royal Canadian Mint has unveiled a strategic plan to manage what it deems a "contamination in the circulation coinage system." As the issue initially surged in the Greater Toronto Area and subsequently permeated the entire country, the Mint, in collaboration with the Canadian Circulation Coin Distribution System, has diligently worked to combat this unforeseen challenge.
Internal documents, revealed through Access to Information, showcase a comprehensive policy guide detailing the measures employed to address the "contamination" of the Canadian circulating coin environment when counterfeit coins are detected. A key insight from these documents emphasizes that the "magnitude (size) of the contamination informs the course of action," underscoring the Mint's adaptive response based on the scale of the counterfeit coin influx.
As the circulation of fake toonies persists and poses an ongoing challenge, the Mint's strategic approach stands as a crucial pillar in safeguarding the integrity of Canada's currency and financial landscape. The complexity of managing this counterfeit coin quagmire highlights the need for continued vigilance and adaptive strategies to navigate the evolving landscape of financial security. The story of the "Camel Toe Toonies" serves as a reminder of the intricate dynamics involved in maintaining the sanctity of the circulating coinage system and the ongoing efforts required to thwart the impact of counterfeit threats on the nation's currency.