Investigators found illegal interest rates and intimidation tactics used to collect debts
An investigation by Alberta's Consumer Investigations Unit (CIU) has resulted in guilty pleas, fines and court-ordered restrictions after investigators found Quebec-based companies charged illegal interest rates and used intimidation tactics to collect debts from Alberta consumers.
The CIU launched the investigation in 2025 after consumers complained about illegal lending activities in Alberta. The unit worked with law enforcement and regulatory partners to gather evidence that supported criminal charges and convictions under the Criminal Code and Alberta’s consumer protection legislation.
Investigators found that the accused used Telephony Denial of Service (TDoS) attacks to overwhelm and disable phone lines while pressuring borrowers to repay debts. The attacks affected borrowers, their family members and employers, and unrelated third parties, including private businesses, a seniors’ residence, an elementary school, and hospitals.
Between April and June 2026, several companies and individuals pleaded guilty under the Criminal Code and Alberta’s consumer protection legislation.
Gerardo Dominique Nicolo pleaded guilty under s. 347(1) of the Criminal Code to providing loans at a criminal interest rate. The court fined him $5,000. Groupe Buddy Inc. and True Loans Inc., which operated as Cashbuddy500.com and Truepaydayloans.ca and which Nicolo represented, pleaded guilty to harassing communications under s. 24(g) of the High-Cost Credit Regulation. The court fined the companies $25,000.
Groupe Speedy Inc., which operated as speedypayloans.ca and which Jean-Maxime Nicolo represented, pleaded guilty to operating without a high-cost credit lender licence under s. 124.02(1) of the Consumer Protection Act and to harassing communications under s. 24(g) of the High-Cost Credit Regulation. The court fined the company $15,000. Jean-Maxime Nicolo also entered into a five-year peace bond that prohibits him from owning, operating or becoming involved, directly or indirectly, in any business that offers or facilitates loans in Alberta.
Groupe C2G Inc., which operated as cash2gonow.com and which Mathieu Travieso-Culurides represented, pleaded guilty to operating without a licence and engaging in harassing communications. The court fined the company $5,000, and it entered into a five-year peace bond.
Groupe Buddy Inc., which also operated as cashbuddy500.com and which Marc Travieso-Culurides represented, pleaded guilty to the same offences. The court fined the company $15,000, and Marc Travieso-Culurides entered into a five-year peace bond.
Liftagram Inc. and 9418-9024 Quebec Inc., which Jean-Louis Larocque represented, pleaded guilty to two counts under s. 111(1) of the Consumer Protection Act for operating a collection agency without a licence. The court fined the companies $5,000. Larocque also entered into a five-year peace bond that restricts his involvement in lending-related businesses in Alberta.
In a media release, the government reminded Albertans to verify that high-cost credit lenders, payday lenders and collection agencies hold the required licences. It also advised consumers to review loan terms and understand mandatory and optional fees.
The government said high-cost credit loans with an annual percentage rate of 32 percent or higher fall under the Consumer Protection Act and require a valid licence. Interest rates above 35 percent may constitute a criminal offence. Payday lenders must hold a licence and may charge no more than $14 per $100 borrowed.
“This investigation by our CIU team revealed the increasingly sophisticated methods used by illegal lenders, including the misuse of telecommunications systems to intimidate and pressure consumers,” Service Alberta and Red Tape Reduction Minister Dale Nally said. “We’re very glad these investigations resulted in charges and convictions.”
