B.C. mortgage broker deposits and withdraws millions into bank account prior to receivership
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The owner of a B.C. mortgage company is facing several lawsuits from investors, accusing him of not repaying them.
VANCOUVER – The owner of a B.C. mortgage company is facing several lawsuits from investors, accusing him of not repaying them.
On Tuesday, an estimated 50 investors attended a hearing at the B.C. Supreme Court, and another 350 watched the proceedings online.
“There's been a lot of people who are very concerned about their investment,” said Chris Ramsey, a lawyer of one of the investors. “I've had calls from many investors who borrowed money against their houses to invest in this in this company. And obviously, this is a very serious issue.”
According to court documents, the total debt is allegedly over $25.7 million, and noted that the number is likely higher as it is only based on information from lawsuits, and there are several investors who have not yet launched legal action.
Greg Martel’s company, My Mortgage Auction Corporation, which oversees Shop Your Own Mortgage, was placed in receivership by the B.C. Supreme Court.
Price Waterhouse Coopers has now taken control of the company’s assets, undertakings and property.
Tuesday afternoon, PwC published its first report into the matter.
