Global Courant
The Victoria mortgage broker who owes investors nearly a quarter of a billion dollars has been suspended by the Crown financial services regulator, citing a lack of honesty, integrity and professionalism.
Greg Martel and his company Shop Your Own Mortgage are the subject of numerous civil actions and litigation to unravel the mystery of what happened to $226 million in missing investor funds.
This is reported by the BC Financial Services Authority (BCFSA) decisionindicates a preliminary investigation into Martel that he “…embezzled millions of dollars in bridging loan investment funds for personal benefit, failed to honor the terms of investment agreements, continued to seek new investment after already defaulting on existing loans and failed to meet multiple BC Supreme Court orders.”
BCFSA said it began receiving complaints in early April from investors alleging that Martel had defaulted on payments. Some also expressed concern that SYOM was issuing false T5 tax forms, leaving investors with significant tax bills for money that was never paid out.
More than one complainant wrote to BCFSA about their fear of having invested in financial fraud.
“I have come to believe it is all a Ponzi scheme. This company fraudulently issued T5s on this imaginary income, resulting in huge tax bills for me and also (Old Age Security) clawback,” one complainant wrote.
The BCFSA’s decision notes that Victoria Police are investigating Martel and his company, raising the specter that the case could turn criminal at some point.
Martel’s whereabouts are uncertain. His attorney Ritchie Clark said he is out of the country but plans to return.
Investors and researchers have been frustrated by Martel’s lack of cooperation.
Clark told CBC that Martel was unable to meet a court filing deadline because he was having trouble with the passwords needed to access his files.
The case will return to the BC Supreme Court in Vancouver on June 9.
