Seasoned swindler apprehended in Ontario for ‘extensive’ investment scam

A notorious fraudster, previously convicted for multiple scams spanning decades, now faces fresh charges related to an alleged Ponzi scheme operating in Ontario.

David Villanueva, aged 62, was apprehended by authorities in Waterloo, Ontario, following a meticulous 14-month investigation. He stands accused of fraud, issuing false statements, and laundering illicit proceeds.

Law enforcement officials reveal that their probe has identified 23 victims from various parts of Ontario, collectively swindled out of over $1.4 million in what investigators deem a ‘large-scale investment fraud.’

An exposé by CBC News in October shed light on grievances against Villanueva and his firm, The Factoring Collective, headquartered in Kitchener-Waterloo. Promising to purchase accounts receivables from struggling companies at a discounted rate and subsequently recover the full amounts owed, the company abruptly ceased operations in early 2023, leaving disgruntled investors in its wake, who claim they are owed millions collectively.

Villanueva has a extensive criminal history, including six convictions for fraud, resulting in a total of 17 years behind bars.

In the mid-1990s, a judge in Ontario famously compared him to a “vulture” and “shark,” preying on unsuspecting victims. During a stint in prison in the 2010s, a psychologist diagnosed Villanueva with displaying the core traits of a psychopath.

Over the last three decades, now 62-year-old Villanueva has claimed various identities, including boxer, lawyer, marriage counselor, and scion of a wealthy Caribbean oil family. He has used aliases such as David Carter, Dr. David Anderson, David Castillo, and David Whitehead.

His criminal repertoire includes running a fake law firm in Toronto, posing as a psychologist in North Bay, Ontario, attempting a sham bid to buy a minor league baseball team in London, Ontario, and establishing a debt-ridden factoring business in Halifax almost 20 years ago.

Villanueva’s first federal fraud conviction dates back to 1995 in Sarnia, Ontario, where he operated as an unlicensed paralegal, diverting funds meant for injured workers and immigrants into his own pockets. Described by the judge as a “liar” and “parasite,” he was sentenced to five years in jail.

In 2004, he was convicted again for fraud, this time in Amherst, Nova Scotia, involving a paralegal firm he and his new wife had established. Despite avoiding jail, he received two years of house arrest and three years of parole.

These legal constraints did little to curb his activities. Shortly after, he convinced a retired plumber in Halifax to invest $365,000 in a non-existent factoring business, using the money instead to finance a call center venture and sustain his extravagant lifestyle. He fled Nova Scotia in 2006, leaving behind unpaid wages for over 40 employees and a trail of furious creditors.

Reemerging in Toronto under the guise of David Carter, a purported Miami-based lawyer, Villanueva established a downtown law firm known as Carter-Herzog. Despite claiming expertise in workers’ compensation and immigration matters, Villanueva, under the guise of “senior counsel,” delegated the bulk of the work to hired lawyers and support staff.

The scheme thrived for almost a year, until disgruntled clients and creditors demanded their dues, prompting Ontario’s Law Society to scrutinize the credentials of “David Carter.” Just before Christmas 2007, Carter-Herzog hosted an extravagant holiday bash for its employees, during which the boss generously declared an additional week of paid vacation between Christmas and New Year’s. However, upon their return in early 2008, they discovered the offices shuttered, with Villanueva nowhere to be found.

Over the subsequent two years, Villanueva faced charges, trials, and convictions for his fraudulent activities in North Bay, London, Toronto, and Halifax, resulting in jail terms totaling over 10 years.

While serving time in a federal facility, Villanueva occupied himself by penning a book. “How Prison Really Works: An Idiot’s Guide to Surviving a Prison Sentence” was self-published as an e-book in 2016. Promoted as a humorous take on life behind bars, it also purported to offer insights into Villanueva’s motivations for defrauding numerous individuals throughout his career.

Waterloo Regional Police affirm that their ongoing investigation remains active and urge any additional victims to step forward.