B.C. mortgage broker deposits and withdraws millions into bank account prior to receivership
VANCOUVER – The owner of a B.C. mortgage company is facing several lawsuits from investors, accusing him of not repaying them.
On Tuesday, an estimated 50 investors attended a hearing at the B.C. Supreme Court, and another 350 watched the proceedings online.
“There's been a lot of people who are very concerned about their investment,” said Chris Ramsey, a lawyer of one of the investors. “I've had calls from many investors who borrowed money against their houses to invest in this in this company. And obviously, this is a very serious issue.”
According to court documents, the total debt is allegedly over $25.7 million, and noted that the number is likely higher as it is only based on information from lawsuits, and there are several investors who have not yet launched legal action.
Greg Martel’s company, My Mortgage Auction Corporation, which oversees Shop Your Own Mortgage, was placed in receivership by the B.C. Supreme Court.
Price Waterhouse Coopers has now taken control of the company’s assets, undertakings and property.
Tuesday afternoon, PwC published its first report into the matter.
It gained online access to Martel’s bank accounts and reviewed their transactions from the last six months, which was the only time period available through the online portal.
PwC discovered $58 million was deposited and withdrawn during the period.
In the last month, $3.5 million was deposited and $5 million was taken out. The report noted $3.5 million was transferred to Martel Investments Ltd and $500,000 was transferred to Shop Your Own Corp.
Martel currently has $273.98 in his account, according to the report.
He has yet to respond to PwC’s emails, but Ramsey is hopeful there will be more information available when the matter returns back to court.
“Mr. Martel is given the opportunity to come back to court Wednesday and Thursday to explain what's going on, and the judge today has effectively made an order that Mr. Martel and these companies disclose the assets,” Ramsey explained.
PwC noted it is having difficulties reaching staff responsible for general bookkeeping and the maintenance of loan receivable records for My Mortgage Auction Corp., and therefore understanding its assets and liabilities will be limited.
Martel is also facing an investigation by the B.C. Financial Services Authority to see if there has been any misconduct.
CTVNews.ca Top Stories
Widow looking for answers after Quebec man dies in Texas Ironman competition
The widow of a Quebec man who died competing in an Ironman competition is looking for answers.
Tom Mulcair: Park littered with trash after 'pilot project' is perfect symbol of Trudeau governance
Former NDP leader Tom Mulcair says that what's happening now in a trash-littered federal park in Quebec is a perfect metaphor for how the Trudeau government runs things.
World seeing near breakdown of international law amid wars in Gaza and Ukraine, Amnesty says
The world is seeing a near breakdown of international law amid flagrant rule-breaking in Gaza and Ukraine, multiplying armed conflicts, the rise of authoritarianism and huge rights violations in Sudan, Ethiopia and Myanmar, Amnesty International warned Wednesday as it published its annual report.
Photographer alleges he was forced to watch Megan Thee Stallion have sex and was unfairly fired
A photographer who worked for Megan Thee Stallion said in a lawsuit filed Tuesday that he was forced to watch her have sex, was unfairly fired soon after and was abused as her employee.
Amid concerns over 'collateral damage' Trudeau, Freeland defend capital gains tax change
Facing pushback from physicians and businesspeople over the coming increase to the capital gains inclusion rate, Prime Minister Justin Trudeau and his deputy Chrystia Freeland are standing by their plan to target Canada's highest earners.
U.S. Senate passes bill forcing TikTok's parent company to sell or face ban, sends to Biden for signature
The Senate passed legislation Tuesday that would force TikTok's China-based parent company to sell the social media platform under the threat of a ban, a contentious move by U.S. lawmakers that's expected to face legal challenges.
Wildfire southwest of Peace River spurs evacuation order
People living near a wildfire burning about 15 kilometres southwest of Peace River are being told to evacuate their homes.
U.S. Senate overwhelmingly passes aid for Ukraine, Israel and Taiwan with big bipartisan vote
The U.S. Senate has passed US$95 billion in war aid to Ukraine, Israel and Taiwan, sending the legislation to President Joe Biden after months of delays and contentious debate over how involved the United States should be in foreign wars.
'My stomach dropped': Winnipeg man speaks out after being criminally harassed following single online date
A Winnipeg man said a single date gone wrong led to years of criminal harassment, false arrests, stress and depression.