logo
'All the stages of grief': Investors speak out about B.C. Ponzi nightmare

'All the stages of grief': Investors speak out about B.C. Ponzi nightmare

Yahoo16-03-2025

Being a headliner on the TV series Hustlers Gamblers Crooks was never a goal of Lana McKenzie's.
Nevertheless, that's where the Courtenay, B.C., mom found herself last year, sharing a nightmare story of being conned out of hundreds of thousands of dollars by notorious B.C. Ponzi schemer Greg Martel.
"It was important because I want to bring awareness to what can happen," McKenzie told CBC News. "You get to fly to L.A. and be in these production offices and [being on the show] was a fun experience. But I would have rather not had the loss."
McKenzie says she lost $330,000 to Martel's swindle. She agreed to appear on the Discovery Channel series on the condition she wouldn't have to speak his name.
"He's an awful person and he does not deserve any glory in this situation," she said, becoming emotional. "It's been devastating for so many people — a crazy, awful, serious fraud that's happened here."
Greg Martel's offices for My Morgage Auction. Corp., also known as Shop Your Own Mortgage, were located at 645 Tyee St. in Victoria. (Mike McArthur/CBC)
Between 2018 and 2023, Martel took in $301 million from investors and paid out $210 million, according to court-appointed receiver and bankruptcy trustee PricewaterhouseCoopers (PwC). They say he blew the remaining $91 million on options trading losses, other failing business ventures, and to pay for his extravagant lifestyle.
Whereabouts unknown
Martel disappeared in 2023 amid lawsuits brought by angry investors wanting their money back.
He was in Thailand for a time, then Dubai, but his current whereabouts are unknown although social media rumours surface now and again claiming he's been spotted in locations such as Israel or Mexico.
Authorities in Canada and the U.S. have issued warrants for his arrest related to contempt of court, but Martel has not been criminally charged. An investigation by the B.C. Securities Commission is ongoing.
Clawback time
Earlier this week, lawyers and investors lined up to make submissions to B.C. Supreme Court Justice Shelley Fitzpatrick as bankruptcy proceedings for Martel and his bogus company, My Mortgage Auction Corp., move into the clawback phase.
A total of 480 so-called "winner" investors and 81 "preferred" investors who profited from the scheme are being ordered to pay all gains minus their original investment into a bankruptcy pool.
Martel's whereabouts are unknown and he has not been charged criminally, however warrants for his arrest have been issued in Canada and the U.S. (Facebook/Greg Martel)
Monies recovered will first go to compensating the accountants and lawyers working on the case, with remaining funds to be distributed between 1,229 investors who lost money, although they are likely to receive pennies on the dollar of their original investment.
According to court documents listing the 561 investors facing clawbacks, two investors owe more than $2 million each, another 14 are on the hook for over $1 million each. The smallest amount on the list is $223.10.
Many of those facing clawbacks say they dispute PwC's calculations, including Quadra Island resident Damian Richards, who is cited as owing $22,375.52.
Richards says according to his financial records, he shouldn't have to pay more than $1,000 or $2,000 into the bankruptcy pool.
"PwC has gone through a whole lot of financial transactions and the accounting records of a company that was acting fraudulently right from the beginning. So I don't know how they can rely on these numbers," he said.
'Anger, resentment, denial'
Richards' history with Martel goes back to 2020 when he invested an inheritance on the advice of a financial planner. He said the planner didn't divulge at the time that her husband worked for Martel.
Making matters worse, he says, are the taxes he's paid on gains that were never realized, a situation many investors are grappling with thanks to the fraudulent tax slips Martel issued through the years.
"We lost our nest egg," he said. "I've paid tens of thousands of dollars in taxes on money I never made."
"It's been really tough to suffer a loss like that. It's all the stages of grief — anger, resentment, denial — everything."
Bankruptcy proceeding are set to continue next month in B.C. Supreme Court in Vancouver.

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Canada and the U.S. exchange draft document on security deal, CBC reports
Canada and the U.S. exchange draft document on security deal, CBC reports

Yahoo

time6 hours ago

  • Yahoo

Canada and the U.S. exchange draft document on security deal, CBC reports

-- In the latest development signaling progress in cross-border defense cooperation, Canada and the United States have begun exchanging a working document outlining the potential terms of a new bilateral security deal. The draft, fewer than five pages, has been sent between Ottawa and Washington, according to reporting by CBC News and Radio-Canada. Sources familiar with the talks told CBC that the document includes a framework for Canadian participation in the 'Golden Dome' security initiative, originally proposed by former U.S. President Donald Trump. The proposal also incorporates pledges for increased Canadian infrastructure investment in the Arctic and renewed commitments to meeting NATO defense spending targets. Despite signs of movement, officials involved in the process are cautioning against premature conclusions. 'There's no deal agreed upon by both countries,' a Canadian government official told CBC, speaking on background due to the confidential nature of the negotiations. The same official added that such documents are common as countries test the waters in complex discussions: 'In a negotiation, there will be many documents sent back and forth with several hypothetical scenarios.' While the text provides a structural basis for talks, sources suggest multiple issues remain unresolved. Two sources confirmed to CBC that there is no expectation of a finalized agreement in time for the G7 summit slated to take place in Alberta next week. This indicates that, while the process has advanced, significant hurdles remain before anything can be formally announced. Both sides are said to be weighing domestic and geopolitical considerations linked to the deal's provisions. The stakes are high, with long-term security collaboration and defense readiness among the core components under review. Related articles Canada and the U.S. exchange draft document on security deal, CBC reports U.S. suspends nuclear equipment supplier licenses to China amid trade war Trump discusses Ukraine war, Iran with Putin Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data

Canada and the U.S. exchange draft document on security deal, CBC reports
Canada and the U.S. exchange draft document on security deal, CBC reports

Yahoo

time6 hours ago

  • Yahoo

Canada and the U.S. exchange draft document on security deal, CBC reports

-- In the latest development signaling progress in cross-border defense cooperation, Canada and the United States have begun exchanging a working document outlining the potential terms of a new bilateral security deal. The draft, fewer than five pages, has been sent between Ottawa and Washington, according to reporting by CBC News and Radio-Canada. Sources familiar with the talks told CBC that the document includes a framework for Canadian participation in the 'Golden Dome' security initiative, originally proposed by former U.S. President Donald Trump. The proposal also incorporates pledges for increased Canadian infrastructure investment in the Arctic and renewed commitments to meeting NATO defense spending targets. Despite signs of movement, officials involved in the process are cautioning against premature conclusions. 'There's no deal agreed upon by both countries,' a Canadian government official told CBC, speaking on background due to the confidential nature of the negotiations. The same official added that such documents are common as countries test the waters in complex discussions: 'In a negotiation, there will be many documents sent back and forth with several hypothetical scenarios.' While the text provides a structural basis for talks, sources suggest multiple issues remain unresolved. Two sources confirmed to CBC that there is no expectation of a finalized agreement in time for the G7 summit slated to take place in Alberta next week. This indicates that, while the process has advanced, significant hurdles remain before anything can be formally announced. Both sides are said to be weighing domestic and geopolitical considerations linked to the deal's provisions. The stakes are high, with long-term security collaboration and defense readiness among the core components under review. Related articles Canada and the U.S. exchange draft document on security deal, CBC reports U.S. suspends nuclear equipment supplier licenses to China amid trade war Trump discusses Ukraine war, Iran with Putin

Halifax real estate listings advertising fixed-term leases as financial asset for buyers
Halifax real estate listings advertising fixed-term leases as financial asset for buyers

Yahoo

time12 hours ago

  • Yahoo

Halifax real estate listings advertising fixed-term leases as financial asset for buyers

While the Nova Scotia government has no plans to regulate a type of lease that's been called a loophole in the province's rent cap legislation, some real estate listings are advertising fixed-term leases as a financial benefit for potential buyers. A brief search by CBC News of multi-unit residential buildings for sale in Halifax in May showed a trend: at least 11 listings mentioned tenants on fixed-term leases. Two listings stated, "Currently double digit returns with rent increases coming in September," with one also saying the property has "little maintenance, zero vacancy and increasing rents." Others mentioned leases ending soon and boasted money-making potential in statements like "for the savvy investor the finances have upside as tenants turn over." Tim Allenby, chair of the Dartmouth chapter of tenant group ACORN, said he's not surprised by this marketing tactic. "It's the incentives of the system that currently exists," Allenby told CBC News in an interview. "They have it set up in such a way that landlords benefit from primarily relying on fixed-term leases, so of course that's going to end up being an investment benefit." According to Nova Scotia's Residential Tenancies Act, a fixed-term lease is entered into for a fixed period of time, with a set end date. This means it doesn't automatically renew every year and landlords can decide whether or not to offer an existing tenant a new lease. Although the province has a temporary five per cent rent cap for existing tenants, fixed-term leases have been criticized by housing advocates as a way around this legislation, allowing landlords to force tenants out and increase prices more than five per cent for new renters. The Nova Scotia Association of Realtors declined to comment on why this type of lease is attractive for property buyers, and why it might be advertised as an asset of a property being listed for sale. It referred CBC News to Rental Housing Providers Nova Scotia, a group that has defended the use of fixed-term leases as a way to mitigate risk when renting to tenants like students, newcomers or people with bad credit or no landlord references. Kevin Russell, executive director of Rental Housing Providers Nova Scotia, said he can't comment on how Realtors market their product — "that's up to them and the owners" — but he said fixed-term leases play an important role in the rental market. "It's difficult to rent when there's no credit history and no landlord references. So they're used to [mitigate] any risk." Russell referenced research done by his organization in 2023 and 2024 that found 86.1 per cent of landlords who responded use fixed-term leases, with top reasons being risk management, limiting property damage and establishing landlord-tenant relationships. The survey found 53.9 per cent of respondents would sell units if fixed-term leases were eliminated or altered. "It will result in thousands of units being unavailable to rent as property owners sell their properties," Russell said. "And a lot of times when we're leasing on fixed-term leases, it's all done … with a partner, with one of the shelter organizations." Russell said the surveys did not ask if landlords chose to use this type of lease to increase profit, recoup costs or circumvent the rent cap. Province says marketing tactic is 'disappointing' An interview request for Jill Balser, the minister in charge of residential tenancies, was declined. "Fixed-term leases, in some situations, work for both tenants and landlords," a government spokesperson said in an emailed statement attributed to Balser. "It is disappointing to see them being used as a marketing tactic." The statement said Balser "strongly suggests" tenants become informed about fixed-term leases before committing to sign one. "I also want to remind tenants there are choices. Periodic leases are another option available," the statement said, before emphasizing the government is focusing on creating more housing to give tenants greater choice in where to live. In mid-May, a provincial official acknowledged that some Nova Scotia landlords are abusing fixed-term leases, but Balser confirmed the following week there are no plans to do anything to help prevent the abuse. "They're aware of the problem," Allenby said. "They have it as a result of a loophole that they created, and now they're telling the whole world they're not going to do anything about it. There is no incentive for a landlord to play by the rules." The provincial government has said there is no data on the use of fixed-term leases. Tenant and landlord groups have been calling for the province to do its own research. "If the Nova Scotia government wanted impartial data on how prevalent this problem is, they have the resources to go out and get it," Allenby said. MORE TOP STORIES

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into the world of global news and events? Download our app today from your preferred app store and start exploring.
app-storeplay-store