Swindled, and taxed for the privilege - Macleans.ca

Swindled, and taxed for the privilege

Tax collectors have been asking Earl Jones victims to pay up


Federal tax officials plan to meet with some of the investors who were swindled by Earl Jones in a multi-million-dollar Ponzi scheme to discuss the paid and outstanding taxes on earnings they never received. Jones, the now-notorious Montreal financial fraudster, is serving an 11-year sentence for swindling his 158 clients in a $50.3 million Ponzi scheme. So far, about 60 of his former clients have come forward with reports they’re getting billed for taxes on non-existent investment returns from Jones. Ginny Nelles says her family lost more than $1 million with Jones and yet her mother has received bills for $10,000 in back taxes and $3,000 dollars in new taxes. Sue Brown, another former Jones client, claims “all the interest income which was taxed, and we all paid our taxes, is now technically money that we never had in the first place. So we shouldn’t be paying taxes on them.”

CBC News

Filed under: