Two Charged in $290K Fraud Scheme Targeting OLG Betting in Ontario

The Ontario Provincial Police (OPP) and Enforcement Bureau (IEB) have charged Joshua Silver, aged 36, and Montgomery McMahon, 45, in Northern Ontario following an investigation into suspicious Proline sports betting activity linked to the Ontario Lottery and Gaming Corporation (OLG).

Ontario Provincial Police Uncover Betting Scheme

The two individuals, who are from Thunder Bay, have been charged with fraud and other offences in connection with a CAD 400,000 (around $289,500) betting scheme involving the use of compromised gift cards to place Proline bets at gas stations in Sault Ste. Marie and Thunder Bay. According to the Ontario Provincial Police, the suspects used the fraudulent gift cards to place bets on both sides of sporting events through the Ontario Lottery and Gaming Corporation’s Proline platform, guaranteeing a payout regardless of the outcome.

During the investigation, officers seized several items believed to belong to individuals other than the accused.  Both Joshua Silver and Montgomery McMahon face multiple charges, including fraud over CAD 5,000 (approximately $3,600), laundering the proceeds of crime, conspiracy, identity theft, forgery, uttering a forged document, and possession of property obtained by crime. Both remain in custody and are set to appear before the Ontario Court of Justice in Thunder Bay. 

Gas Stations Were Unaware of the Scheme

OPP spokesperson Gosia Puzio stated that the gas stations and their staff were unaware that the gift cards being used were fraudulent. The cards were used to make purchases and to place wagers through OLG. The bets were placed at two gas stations in Sault Ste. Marie and one in Thunder Bay. Puzio explained that the betting activity showed a pattern typical of money laundering, where individuals place large bets on both sides of a sporting event to guarantee little to no financial loss while still cycling funds.

Further investigation confirmed that the wagers and purchases at the gas bar locations were made using fraudulently obtained gift cards. Puzio also mentioned that the police cannot disclose how the suspects obtained the gift cards, as that information is part of the ongoing criminal case against them. During the execution of the search warrant, officers seized multiple pieces of identification that did not belong to the accused, but the authorities are unable to disclose the identities of those individuals.

Police have stated that the investigation is still ongoing and are urging anyone with information to contact the OPP at 1-888-310-1122 or to submit an anonymous tip through Crime Stoppers.