Currency exchange owner admits he owes customers up to $400K in unprocessed payments

Gurdev Singh Billg tried to send just over $8,200 to India to help out a friend in need, but he says when he used a money exchange in Surrey, B.C., the cash never reached its destination.

Billg is among around 30 customers who say they've been duped by the Indo-Canadian Money Exchange, whose owner admits he owes up to $400,000 to people whose money did not reach their intended recipients in India.

Billg said the owner, Tarlochan Singh, assured him he would be reimbursed for the money he tried to send months ago — but that hasn't happened.

"He promised to me he had some bad situation," Billg said. "He said, 'give me 14 days,' but after I'm waiting 14 days, he never sent [the money] again," he said. 

He said his friend in India needs the money, but he keeps getting the runaround from Singh. 

Billg says he arranged a bank draft for the amount, which he then gave to the exchange to transfer. He said he had used the service in a similar way for four or five years and hadn't had any problems previously. 

Many Indo-Canadians send money to India to support friends and family. Many use currency exchanges because they tend to provide better exchange rates and lower fees compared to banks and money transfer companies such as Western Union and MoneyGram.

In an interview, Singh admits that he owes between $350,000 and $400,000 to about 30 customers who, like Billg, used the exchange to send money to India.

Singh has promised to return the money and blamed the problem on a mixup in India, but wouldn't go into specifics.

"I have called everyone affected," said Singh, speaking to CBC News in Punjabi, referring to those who lave lost their money. 

Meanwhile, Indo-Canadian Money Exchange, which is on 80th Avenue, has been closed for more than a month. 

Surrey RCMP are investigating the case and confirm they've received reports from the public alleging they were victims of fraud at a money exchange business in Surrey. 

But Billg said he can't afford to take the case to court. His only hope is if Singh stands by his promise to pay back the money.

In Canada, money service businesses have to register with the Financial Transactions and Reports Analysis Centre of Canada, the nation's financial intelligence unit responsible for deterring money laundering and terrorist financing.

However, only Quebec has a provincial licensing system for such businesses. 

A provincial report on money laundering released earlier this year and written by retired Mountie Peter German recommended the province regulate money transfer and money exchange businesses.