The trustee appointed to govern the bankruptcies of a Victoria loan corporate and its proprietor has concluded that they dedicated “numerous offences” and operated as a “massive Ponzi scheme.”
PricewaterhouseCoopers shared those conclusions in a report submitted to the B.C. Excellent Court docket and the federal Administrative center of the Superintendent of Chapter this future. The report, referred to as a “Section 170 Report,” main points the trustee’s causes for opposing the release of Greg Martel from chapter.
It additionally signifies that greater than 930 collectors have come ahead to assert Martel and his corporate My Loan Public sale Corp. owe them a complete of greater than $317 million.
Martel operated MMAC beneath the title “Shop Your Own Mortgage.” Closing day, he and the corporate was the topic of a couple of proceedings from events claiming tens of millions of greenbacks owed to them.Â
MMAC used to be positioned in receivership closing Might, and PwC used to be appointed its chapter trustee in June. An MMAC investor got a chapter line in opposition to Martel on Aug. 31, 2023, and PwC used to be appointed trustee of the non-public chapter as neatly.
Martel’s private chapter stems from the truth that he for my part assured investments and loans made to MMAC. Date bankrupt people are steadily eligible for automated discharge from chapter nearest 9 months, PwC filed its report back to block discharge in Martel’s case.
In step with PwC’s document, Martel has failed to accomplish “specific duties” required of him as a part of the chapter continuing, together with turning over paperwork and constituent and speaking with the trustee.
“Martel left Canada sometime before the commencement of the receivership of MMAC and the trustee was aware that he resided in Thailand until Aug. 31, 2023, when he was deported from Thailand and travelled to Dubai, UAE,” the report reads. “Since the commencement of MMAC’s receivership and subsequent bankruptcy, Martel refused to co-operate with the receiver/trustee.”
Along with failing to accomplish his tasks, Martel has additionally dedicated offences beneath the federal Chapter and Insolvency Function, in keeping with PwC.
As indexed within the PwC document, the ones offences come with:
Fraudulent disposition of constituent;
Subject matter omission in a observation or accounting;
Concealing paperwork affecting the environment of the bankrupt’s affairs;
Acquiring credit score or constituent by means of fake representations;
And fraudulently concealing any constituent of a price of $50 or extra
Date the trustee’s document signifies that Martel “raised over $270 million from investors on false pretenses” and collectors’ claims in opposition to him and MMAC general greater than $317 million, it additionally signifies that his stream belongings are use lower than 50 cents for each and every buck of his liabilities.
“The trustee does not view this as beyond Martel’s control,” the report reads, earlier than noting the previous loan dealer’s “unjustifiable extravagance in living.”
In step with PwC, Martel and MMAC spent please see quantities, “at a minimum,” between 2018 and 2023:
$3.1 million on journey (together with non-public airplane charters, industrial airfares, ferries, journey hailing, and lodging)
$3.1 million on cars (together with acquisitions and leasing prices)
$1.1 million on hire for a couple of properties
$261,000 on eating place foods and occasions
$200,000 on watches and jewellery
$150,000 on relaxation (together with film tickets, massages, and relief hotels)
$59,000 on “fitness/sports” (together with carrying items and vegetables charges)
And $50,000 on wine and winery occasions
The B.C. Monetary Services and products Authority suspended Martel’s licence to practise as a loan dealer closing day, bringing up proof indicating he and the corporate had “conducted business in a manner prejudicial to the public interest.”Â
The PwC document signifies that the B.C. Securities Fee and the Victoria Police Branch also are investigating Martel.
“The trustee does not expect that the investors will receive any recovery from the bankruptcy estates of Martel or MMAC,” the document concludes.Â
