VICTIMS

The number of victims who have fallen prey to financial predators is astounding. Most victims do not reveal that they have lost their savings. They feel embarrassed to have lost their nest-egg. They believe they are amongst a small number of victims. The reality is that there are a large number of victims, and the public is not aware. SIPA encourages victims to speak out to help others avoid the same tragedy.

Each year there are thousands of complaints lodged by investors who believe they have unfairly lost their savings. Most complaints are the result of significant losses when the investor has had leveraged investments in inappropriate securities.

There are many cases of seniors who have lost significant portions of their savings because their advisor either advised them to take inappropriate action or used discretion to purchase inappropriate investments.

This section provides a glimpse into the world of victims who fell prey to financial predators. The information is gleaned from the news media and other sources, of some of the losses that have occurred. Names of the victims have been changed to protect their identity. Names of the perpetrators and their companies are real.

The amount of financial loss due to white collar crime is staggering. We continue to read about new situations where victims have lost large amounts of money. In some cases life savings and then some have been lost.

BLOW - "Financial advisor charged with fraud" - Toronto Star, August 31, 2000

James Daw writes about David Blow, an unlicensed Stouffville-area financial adviser charged with defrauding four clients and police saying they are investigating complaints from nearly 40 others with the amount of money involved  exceeding $4 million.

Daw reports that Blow joined the 300-member congregation in 1993, and describes some of the victims:

One member attends the church and his parents invested about $150,000 with Blow.

Police said in July that a 68-year-old man and a 48-year-old woman discovered $231,000 had been cashed from life insurance policies and was missing.

Police said a 79-year-old man from Beaverton thought he had invested $100,000 

Police said a 66-year-old woman from the Lindsay area thought she had invested $1.6 million.

Blow was sentenced to six months in jail.

(Source - Toronto Star)

LUSH - "SWINDLER PREYED ON ELDERLY", National Post, 25 February 2000

An article in the National Post says - A former mutual fund salesman pleaded guilty yesterday to defrauding 13 elderly clients of more than $1-million.Gerald Lush, 59, pleaded guilty to 14 of 29 theft and fraud charges for defrauding the seniors over an eight-year period while he was working for Investors Group. Lush was caught in 1997 after an audit uncovered the thefts. Prosecutors have argued that Lush should get a prison term of up to seven years.

(Source - National Post)

NELBAR - "BOND SCAM UNCOVERED"

is the headline by Linda Leatherdale in the Toronto Sun.

Some 110 investors fear they've lost $10.4 million deposited with Nelbar Financial Corp. The Ontario Financial Services Commission has laid charges and Nelbar's affiliate firm Essex Capital Corporation has had it's license suspended by the Investment Dealers Association.

(Source - Toronto Sun)

WALKER DEFRAUDED VICTIMS OF $10 MILLION.

Albert Walker operated Financial Services Inc. and set up United Canvest (Cayman) Corp. Ltd. in the Caymen Islands. He met people at church and through his business. He gained their trust and convinced them to invest in his companies. He fled Canada in 1990 and was convicted of murder in England in 1999.

Victims James, 74 yrs, & Nancy lost $70,000.

Victims Geoff & Theresa lost $5.1 million.

Victim Kim lost $50,000.

Victims Ronald & May lost $80,000.

Victims Elmer & Minnie lost $200,000.

Victims David & Irma lost $220,000.

(Source - Ottawa Citizen)

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