NEWS Article
Class Action Lawsuits
Toronto Sun - Wednesday, March 7, 2001
Swindler gone, not forgotten
Rip people off of
their life savings, and don't expect flowers when God comes calling to
send the swindler to Hell to face his Devil.
"A piece of garbage has passed away," sniffed one angry victim
of Patrick J. Kinlin, the 55-year-old scam artist who was sentenced in
1999 to five years in jail for defrauding 75 investors of $20 million,
then stunned us all by dying behind bars on Sunday.
This victim, who lost $1.4 million, begged that I not use his name.
Another victim, who also wanted to remain anonymous, snapped, "He
won't be missed."
Stan Buell, president of the Small Investor Protection Association, said
he sympathizes with Kinlin's victims: "Unfortunately, his death
didn't come soon enough for many of the victims who will never see their
money."
It is believed Kinlin, who suffered ailing health when his house of cards
finally collapsed in the summer of 1999, then seemed to regain strength in
jail, died in Kingston Penitentiary from heart problems.
Buell said what's even more insulting is that not even jail could stop
this swindler, who was under investigation for operating an Old Age
Supplement scam from behind bars.
But people who knew Kinlin said there are a few women who will miss this
charismatic scam artist, who used his clients' money to act out a life of
a high-flying, successful Bay Street financial guru. His flamboyant
lifestyle included a chauffeur-driven Mercedes and number of luxurious
residences. He even managed to con three rich women into marrying him.
Those marriages ended in divorces, with one ex-wife filing for a
restraining order.
Sources say three women regularly visited Kinlin in jail. One, allegedly,
was a victim who lost $100,000 and would, according to the source, sign in
as Kinlin's wife for overnight visits, or should we say, some jailhouse
nookie.
"Right to the end, he was able to lure them in," commented the
source.
Kinlin was so smooth that he even delivered the eulogy at the funeral of
one of his Belleville-area female clients, whose estate he fleeced for
$150,000.
ANONYMOUS TIP
It was back on June 23, 1999, when an anonymous tip led me to find Kinlin
holed up in a Pennsylvania hospital, where he claimed to be distraught
after attempting suicide.
Meanwhile, Toronto Police had issued a warrant for his arrest, after an
investigation unravelled a trail of devastated victims. Even members of
Kinlin's own family, who rushed to his bedside, later found out they were
victims.
It took four months before Kinlin was extradited to Canada to face the
music. Kinlin had been licensed by the Ontario Securities Commission to
sell mutual funds.
"The unfortunate thing is there are still many Kinlins out there
ripping off investors, particularly seniors," remarked Buell, whose
Small Investor Protection organization has grown to 350 members.
Buell points to the recent sentencing of church-going David Blow, who
pretended to be an insurance agent in Stouffville for more than a decade,
although he was not licensed. He is now spending 43 months in federal
prison after defrauding 65 victims of $7.3 million over 11 years.
Blow was accused of cashing in the insurance policies of fellow church
members, forging cheques and selling bogus guaranteed investment
certificates.
This scam artist even admitted he took money from his church, as well as
his daughter's horse-riding association.
Buell complains, "There are just too many predators out there,"
adding he's just received a complaint from a woman who's lost $10,000 in
an offshore banking scam.
Fraud Det. Steve Burnham of 52 Division agrees the number of investor
fraud incidents is on the rise. It was Burnham who arrested Kinlin, and
since then he's investigated and laid charges in numerous incidents
involving fraud.
His latest is the arrest of a man who claimed to be a Harvard-trained tax
lawyer and who defrauded victims in Canada, the U.S., Europe and Saudi
Arabia. The victims, who lost on average $12,000 each, were asked to send
money to the man to invest in high-return portfolios. The money,
apparently, was never invested.
LAVISH LIFESTYLE
Like Kinlin, there are tales of a lavish lifestyle, including expensive
suits and a Mercedes-Benz. The man was arrested in a $3,800-a-month Palace
Pier condo, Burnham said.
Nizamuddin Khaja, 32, also known as Kamal Mian, faces charges of fraud.
The sad reality is that if investors become victims of fraud, there is
little or no hope of ever recovering the money. Only small claims court or
class-action suits hold some hope, but don't hold your breath.
However, if investment firms go belly-up, the Canadian Investor Protection
Fund will cover up to $500,000 for member firms of the Investment Dealers
Association, while mutual fund dealers are covered up to $5,000 by the
Ontario Contingency Trust Fund.
Both Buell and Burnham would like to see an investor protection fund, to
which the investment industry would contribute and whose funds could be
used to compensate victims of fraud.
If you've been ripped off, contact the Small Investor Protection
Association at 905-471-2911 or at www.sipa.to , or call Burnham at
416-808-5271.
Reprinted from the Toronto Sun
Library
