A Guelph man is accused of bilking various financial institutions out of more than $125,000 through what police describe as a “bust-out fraud.”

“Bust-out fraud” refers to cases in which financial accounts receive large deposits, often from counterfeit cheques, followed quickly by withdrawals.

Guelph Police say they began investigating one such case in December, and the investigation culminated in a 56-year-old man being arrested on Tuesday.

He faces five charges of fraud over $5,000, as well as one charge of laundering proceeds of crime.

Police allege that he used counterfeit deposits to inflate his financial standing, and then used cash advances to obtain money.