Latest news with #GregMartel
CBC
06-05-2025
- Business
- CBC
Ponzi scheme victims name Royal Bank, B.C. financial services regulator in class action lawsuit
Social Sharing Three men who lost money investing with Ponzi schemer Greg Martel have filed a class action lawsuit against the Royal Bank of Canada, the British Columbia Financial Services Authority (BCFSA), Martel and the company through which he ran his multi-million dollar financial fraud. Representative plaintiffs Dustin Frank Renz, David Cumby and Andy Todd Wilson allege in a notice of civil claim filed in B.C. Supreme Court that both the Royal Bank and the BCFSA are liable for losses suffered by 1,229 investors who lost money to Martel because the two entities, despite having clear regulatory duties, failed to detect or prevent Martel's misconduct. "These failures — by the bank responsible for processing the majority of investor funds, and the regulator responsible for supervising the mortgage broker— enabled the [Ponzi] scheme to persist unchecked for years, resulting in massive and avoidable investor losses," reads the claim. According to Meldon Ellis, the lawyer representing the three men, Wilson's net losses to Martel amounted to $100,000, Renz's $38,000, and Cumby's $20,800. "The plaintiffs allege that the scheme could not have resulted in such extensive losses without the involvement — and badge of credibility — provided by a major bank and a licensed regulator," said Ellis in an email to CBC. None of the allegations have been tested in court, and the defendants have not yet filed responses. CBC reached out to RBC and BCFSA for comment on the class action. RBC said it was unable to comment on the lawsuit while it is before the court. BCFSA told CBC that after receiving complaints about Martel in 2017 and 2021, it "conducted investigations and determined, based on the evidence, that there was no misconduct within BCFSA's jurisdiction under the Mortgage Brokers Act." If certified, the class action will automatically include the other 1,226 investors who, like the representative plaintiffs, were also "net losers" in the Ponzi — in other words, all the investors who received less money back than they put in. Martel disappeared as his company, My Mortgage Auction Corp. (MMAC), was collapsing in 2023, and his whereabouts remain unknown. Authorities in Canada and the U.S. have issued warrants for Martel's arrest related to contempt of court, but Martel has not been criminally charged, and an investigation by the B.C. Securities Commission is ongoing. Last year, court receivership and bankruptcy proceedings heard that the bridge loans Martel was peddling never existed, and that — in classic Ponzi fashion — early investors in his scheme had been paid off with money put in by investors who joined later. All told, Martel was found to have taken in $301 million and paid out $210 million in the scheme. The remaining $91 million was diverted to pay for his lavish lifestyle, to his failed car-share business, and to losses he suffered trading options, according to analysis by court-appointed receiver and bankruptcy trustee PricewaterhouseCoopers. According to court documents, the three representative plaintiffs were introduced to MMAC in 2022 and 2023, in what would have been a short time before Martel's financial house of cards started collapsing. The three men invested in bridge loans advertised on the MMAC online portal that promised interest of between nine and 14 per cent over terms of four months or less. The men were directed to wire their funds to the MMAC account at the Royal Bank branch at 3541 Blanshard St. in Victoria. That was the last they saw of their money. The claim says that RBC, as a reporting entity under the Proceeds of Crime and Terrorist Financing Act, was required to establish internal controls, verify client identities, monitor account activity and report suspicious transactions. The lawsuit alleges there were multiple red flags with Martel and MMAC, including "high-volume investor deposits inconsistent with a mortgage brokerage business, circular fund flows characteristic of round-tripping, and account activity inconsistent with the provision of legitimate mortgage lending services." According to online references, "round-tripping" involves financial transactions with little or no economic value that can artificially manipulate an entity's financial records. Regarding the BCFSA, the claim alleges that the agency conducted only "superficial investigations" in 2017 and 2021 when it received complaints about Martel. "These complaints raised concerns which, if properly investigated, could have exposed the ongoing fraudulent scheme," reads the claim. The BCFSA is a Crown provincial agency responsible for regulating and overseeing the financial services sector, including mortgage brokers. The lawsuit is seeking to be certified as a class action and is seeking general and specific damages.
The Province
06-05-2025
- Business
- The Province
Investors duped in $300 million Ponzi scheme sue Royal Bank, B.C. financial regulator
Three investors hope to have their claim certified as a class action for more than 1,200 investors who also lost money Greg Martel in 2022. Photo by Facebook Investors who lost money in a $300 million Ponzi scheme masterminded by B.C. resident Greg Martel are suing the Royal Bank of Canada and a B.C. financial regulator. This advertisement has not loaded yet, but your article continues below. THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY Subscribe now to read the latest news in your city and across Canada. Exclusive articles by top sports columnists Patrick Johnston, Ben Kuzma, J.J. Abrams and others. Plus, Canucks Report, Sports and Headline News newsletters and events. Unlimited online access to The Province and 15 news sites with one account. The Province ePaper, an electronic replica of the print edition to view on any device, share and comment on. Daily puzzles and comics, including the New York Times Crossword. Support local journalism. 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Access articles from across Canada with one account Share your thoughts and join the conversation in the comments Enjoy additional articles per month Get email updates from your favourite authors The three investors — Andy Todd Wilson of Vancouver, Dustin Frank Renz from Colwood on Vancouver Island, and David Cumby of Edmonton — hope to have their case certified as a class-lawsuit for the more than 1,200 investors who also lost money. The trio filed the case in B.C. Supreme Court on April 25 and are seeking damages for negligence, wilful blindness and anti-money-laundering failures. The Royal Bank and the B.C. Financial Services Authority have not yet filed responses and the allegations have not been proven in court. The plaintiffs allege the Royal Bank and the provincial regulator failed to detect or prevent misconduct despite having clear regulatory duties. 'These failures — by the bank responsible for processing the majority of investor funds, and the regulator responsible for supervising the mortgage broker — enabled the scheme to persist unchecked for years resulting in massive and avoidable investor losses,' says the notice of claim filed by the trio's Vancouver lawyer, Meldon Ellis. Essential reading for hockey fans who eat, sleep, Canucks, repeat. By signing up you consent to receive the above newsletter from Postmedia Network Inc. Please try again This advertisement has not loaded yet, but your article continues below. The financial regulator had received formal complaints in 2017 and 2021 about Martel and his mortgage brokerage firm, which, if 'properly investigated,' could have exposed the fraudulent scheme, says the lawsuit. The claim says the bank failed to detect or act on several red flags, including high-volume deposits inconsistent with a mortgage broker business. In a written statement, the financial service authority said Monday its investigations in 2017 and 2021 did not substantiate a breach under the legislation it enforces given the activities in question 'presented' as outside the scope of regulated mortgage brokering. The Royal Bank said Monday it was would not comment while the matter was before the courts. Martel, who was a Victoria-based mortgage broker who later worked out of California, pitched investments for short-term loans to his clients and others. Those investors, according to court documents and reports compiled by receiver PricewaterhouseCoopers, had been collecting high returns on the basis that their money was pooled to provide bridging loans for real estate development, often for less than 90 days, to allow projects to secure permanent financing or pay off a current loan. This advertisement has not loaded yet, but your article continues below. But PwC found the investments had been a massive Ponzi scheme and there were no bridge loans. In a Ponzi scheme, named after 1920s-era fraudster Charles Ponzi, earlier investors are paid off with later investors' money and not from the profits of any real business. An analysis of 65,000 transactions by the receiver found that $301 million was invested and $210 million was repaid using incoming funds. The analysis also found that $91 million was lost through options trading, a failed car-share business in California and Martel's personal expenditures. When the scheme collapsed, there were more than $316 million outstanding claims, according to the civil suit. Of the 1,800 people who invested, 1,229 had net losses, meaning they paid more into the loan scheme than they were paid out in their principle and interest payments. Wilson, a building maintenance contractor, Renz, a military police officer, and Cumby, an entrepreneur, had net losses. The court filing does not say how much they lost. This advertisement has not loaded yet, but your article continues below. In earlier lawsuits filed in Canada and the U.S. against Martel, investors claiming losses included those in Vancouver, Burnaby, Coquitlam, North Vancouver, Victoria, Kelowna and Prince George, and also in Alberta, California and as far away as New York. Records obtained by Postmedia News through a freedom of information request found that B.C. financial regulators received complaints about Martel, including that a high-return investment opportunity might be a scam, years before the Ponzi scheme collapsed in 2023. Martel was declared bankrupt in B.C. Supreme Court in 2023 and there are warrants for his arrest in Canada and the U.S. for contempt of court because he failed to properly provide answers and information on what happened to the money. After telling investors in a series of online videos they would get their money back, Martel fled to Thailand and disappeared, according to U.S. court filings. This advertisement has not loaded yet, but your article continues below. PwC's report filed last year made it clear that investors were not getting their money back from Martel. The report noted that Martel's spending between 2018 and 2023 included $3.1 million on travel, $3.1 million on vehicles, $1.1 million on rent, $261,000 on meals, $200,000 on jewelry, and $150,000 on recreation and vacations. Martel's whereabouts are unknown but PwC had said last year that it learned he had been exiled from Thailand after Aug. 30, and later travelled to Dubai. There are investigations underway by the B.C. Securities Commission and the Victoria police. With files from The Victoria Times Colonist ghoekstra@ Read More Vancouver Canucks News Baseball Vancouver Canucks Food
Vancouver Sun
06-05-2025
- Business
- Vancouver Sun
Investors duped in $300 million Ponzi scheme sue Royal Bank, B.C. financial regulator
Investors who lost money in a $300 million Ponzi scheme masterminded by B.C. resident Greg Martel are suing the Royal Bank of Canada and a B.C. financial regulator. The three investors — Andy Todd Wilson of Vancouver, Dustin Frank Renz from Colwood on Vancouver Island, and David Cumby of Edmonton — hope to have their case certified as a class-lawsuit for the more than 1,200 investors who also lost money. The trio filed the case in B.C. Supreme Court on April 25 and are seeking damages for negligence, wilful blindness and anti-money-laundering failures. Start your day with a roundup of B.C.-focused news and opinion. By signing up you consent to receive the above newsletter from Postmedia Network Inc. A welcome email is on its way. If you don't see it, please check your junk folder. The next issue of Sunrise will soon be in your inbox. Please try again Interested in more newsletters? Browse here. The Royal Bank and the B.C. Financial Services Authority have not yet filed responses and the allegations have not been proven in court. The plaintiffs allege the Royal Bank and the provincial regulator failed to detect or prevent misconduct despite having clear regulatory duties. 'These failures — by the bank responsible for processing the majority of investor funds, and the regulator responsible for supervising the mortgage broker — enabled the scheme to persist unchecked for years resulting in massive and avoidable investor losses,' says the notice of claim filed by the trio's Vancouver lawyer, Meldon Ellis. The financial regulator had received formal complaints in 2017 and 2021 about Martel and his mortgage brokerage firm, which, if 'properly investigated,' could have exposed the fraudulent scheme, says the lawsuit. The claim says the bank failed to detect or act on several red flags, including high-volume deposits inconsistent with a mortgage broker business. In a written statement, the financial service authority said Monday its investigations in 2017 and 2021 did not substantiate a breach under the legislation it enforces given the activities in question 'presented' as outside the scope of regulated mortgage brokering. The Royal Bank said Monday it was would not comment while the matter was before the courts. Martel, who was a Victoria-based mortgage broker who later worked out of California, pitched investments for short-term loans to his clients and others. Those investors, according to court documents and reports compiled by receiver PricewaterhouseCoopers , had been collecting high returns on the basis that their money was pooled to provide bridging loans for real estate development, often for less than 90 days, to allow projects to secure permanent financing or pay off a current loan. But PwC found the investments had been a massive Ponzi scheme and there were no bridge loans. In a Ponzi scheme, named after 1920s-era fraudster Charles Ponzi, earlier investors are paid off with later investors' money and not from the profits of any real business. An analysis of 65,000 transactions by the receiver found that $301 million was invested and $210 million was repaid using incoming funds. The analysis also found that $91 million was lost through options trading, a failed car-share business in California and Martel's personal expenditures. When the scheme collapsed, there were more than $316 million outstanding claims, according to the civil suit. Of the 1,800 people who invested, 1,229 had net losses, meaning they paid more into the loan scheme than they were paid out in their principle and interest payments. Wilson, a building maintenance contractor, Renz, a military police officer, and Cumby, an entrepreneur, had net losses. The court filing does not say how much they lost. In earlier lawsuits filed in Canada and the U.S. against Martel, investors claiming losses included those in Vancouver, Burnaby, Coquitlam, North Vancouver, Victoria, Kelowna and Prince George, and also in Alberta, California and as far away as New York. Records obtained by Postmedia News through a freedom of information request found that B.C. financial regulators received complaints about Martel, including that a high-return investment opportunity might be a scam, years before the Ponzi scheme collapsed in 2023. Martel was declared bankrupt in B.C. Supreme Court in 2023 and there are warrants for his arrest in Canada and the U.S. for contempt of court because he failed to properly provide answers and information on what happened to the money. After telling investors in a series of online videos they would get their money back, Martel fled to Thailand and disappeared, according to U.S. court filings. PwC's report filed last year made it clear that investors were not getting their money back from Martel. The report noted that Martel's spending between 2018 and 2023 included $3.1 million on travel, $3.1 million on vehicles, $1.1 million on rent, $261,000 on meals, $200,000 on jewelry, and $150,000 on recreation and vacations. Martel's whereabouts are unknown but PwC had said last year that it learned he had been exiled from Thailand after Aug. 30, and later travelled to Dubai. There are investigations underway by the B.C. Securities Commission and the Victoria police. With files from The Victoria Times Colonist ghoekstra@
CBC
18-03-2025
- Business
- CBC
Greg Martel Ponzi scheme investors see court claw back their profits to pay his victims
It's been two years since the biggest Ponzi scheme in B.C. history started to collapse. The man behind the $300 million fraud -- Greg Martel -- has not been criminally charged. And his whereabouts are unknown. As Karin Larsen reports, many of his former investors say they are still reeling.
Yahoo
16-03-2025
- Business
- Yahoo
'All the stages of grief': Investors speak out about B.C. Ponzi nightmare
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.
