Calgary (Rajeev Sharma): A major investigation into illegal lending practices targeting consumers in Alberta has resulted in several guilty pleas, financial penalties and court-imposed restrictions, following allegations of excessive interest rates, harassment and intimidation.
The province’s Consumer Investigations Unit (CIU) began probing the activities in 2025 after receiving complaints from consumers. Investigators found that some Quebec-based businesses were presenting themselves as legitimate lenders while allegedly offering loans at unlawful rates and using aggressive methods to recover money from borrowers.
Authorities also uncovered the use of Telephony Denial of Service (TDoS) attacks. The technique was allegedly used to flood telephone systems with calls, disrupting communications and putting additional pressure on people connected to borrowers. The disruption reportedly extended beyond borrowers to their relatives, workplaces and unrelated establishments, including businesses, a seniors’ residence, an elementary school and hospitals.
Between April and June 2026, several individuals and companies admitted to offences under Alberta’s consumer protection laws and the Criminal Code.
Gerardo Dominique Nicolo pleaded guilty to providing loans at a criminal interest rate and was ordered to pay a $5,000 fine. Companies associated with him, including Groupe Buddy Inc. and True Loans Inc., also pleaded guilty to allegations involving harassing communications and received a $25,000 fine.
Groupe Speedy Inc., which operated as SpeedyPayLoans.ca, was fined $15,000 after pleading guilty to operating without the required high-cost credit licence and engaging in harassing communications. Its representative, Jean-Maxime Nicolo, also entered into a five-year peace bond preventing him from owning or operating a lending-related business in Alberta.
Other businesses also faced penalties. Groupe C2G Inc. was fined $5,000 and entered into a five-year peace bond, while Groupe Buddy Inc. received a $15,000 fine in a separate proceeding. Marc Travieso-Culurides, associated with the company, was also placed under a five-year peace bond.
Liftagram Inc. and 9418-9024 Quebec Inc. were fined $5,000 after pleading guilty to operating a collection agency without a licence. Their representative, Jean-Louis Larocque, likewise entered into a five-year peace bond restricting his involvement in lending-related businesses in Alberta.
Service Alberta Minister Dale Nally said the investigation highlighted increasingly sophisticated methods allegedly being used by illegal lenders to pressure consumers, particularly through telecommunications systems.
The Alberta government has urged consumers to verify the licence status of lenders and collection agencies before entering into financial agreements. Borrowers have also been advised to examine interest rates, fees and other loan conditions carefully.
Under Alberta’s consumer protection framework, high-cost credit products with an annual percentage rate of 32 per cent or more are regulated and require licensing. The province also notes that interest rates exceeding 35 per cent can potentially amount to a criminal offence.
Consumers who suspect they have been subjected to unfair lending or collection practices can contact Alberta’s Consumer Contact Centre for information about filing a complaint.
