B.C. judge certifies class-action lawsuit over alleged ponzi scheme - Macleans.ca
 

B.C. judge certifies class-action lawsuit over alleged ponzi scheme


 

VANCOUVER – A B.C. Supreme Court judge has certified a class-action lawsuit against a notary public and several major financial institutions over an alleged ponzi scheme that bilked investors out of millions of dollars.

Three people have named two individual defendants, along Royal Bank, Toronto-Dominion Bank, Coast Capital Savings Credit Union, Vancouver City Savings and Worldsource Financial Management Inc.

None of the allegations have been proven in court, but a court document says the plaintiffs invested money into a private opportunity that one of the individual defendants promoted, though it didn’t exist.

Minimum investments ranged between $50,000 and $100,000, and the document alleges that defendant dispersed the plaintiffs’ funds without their knowledge instead of depositing them into a trust account.

The document says returns were allegedly paid to the investors from their own money or money that was paid by subsequent investors.

The plaintiffs say the scheme involved about 203 investments and their allegations include breach of trust, fraud and negligence.


 
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