The RCMP arrested several people Tuesday on suspicion of defrauding people of their RRSPs.
Arrest warrants have been issued for 16 people suspected of conspiring to manipulate stocks to wipe out the savings of a number of victims.
The Mounties, the Surete du Quebec and Quebec's AMF investment watchdog raided more than a dozen locations in greater Montreal and the Laurentians as part of Project Carrefour.
Details
Police say fraudsters sought out RRSP holders through classified ads, the Internet or word of mouth.
Investors were allegedly offered an opportunity to solve cash-flow problems by cashing in up to 40 per cent of the value of their accounts.
People transferred their savings to third parties, who police say bought and sold shares in order to drive up the prices of various companies' stocks.
"When share prices reached a high enough level, the organization sold its own shares for a profit," the RCMP said in a statement.
"As a result the market price of the shares plummeted, leaving the victims with empty investment accounts, no securities or worthless shares."
Personal info
Alleged victims had provided access codes and passwords, prompting the Mounties to remind people never to divulge personal information to strangers.
People are also being reminded that all legitimate RRSP withdrawals are taxed.
The 12-month investigation was spearheaded by the Integrated Market Enforcement Team (IMET) that includes the RCMP, the SQ, the AMF and prosecutors.
