B.C. mortgage broker ran $270-million Ponzi scheme, then fled Canada, bankruptcy trustee says
CTV
The trustee appointed to manage the bankruptcies of a Victoria mortgage company and its owner has concluded that they committed "numerous offences" and operated as a "massive Ponzi scheme."
The trustee appointed to manage the bankruptcies of a Victoria mortgage company and its owner has concluded that they committed "numerous offences" and operated as a "massive Ponzi scheme."
PricewaterhouseCoopers shared these conclusions in a document submitted to the B.C. Supreme Court and the federal Office of the Superintendent of Bankruptcy this week. The document, known as a "Section 170 Report," details the trustee's reasons for opposing the discharge of Greg Martel from bankruptcy.
It also indicates that more than 930 creditors have come forward to claim Martel and his company My Mortgage Auction Corp. owe them a total of more than $317 million.
Martel operated MMAC under the name "Shop Your Own Mortgage." Last year, he and the company became the subject of multiple lawsuits from parties claiming millions of dollars owed to them.
MMAC was placed in receivership last May, and PwC was appointed its bankruptcy trustee in June. An MMAC investor obtained a bankruptcy order against Martel on Aug. 31, 2023, and PwC was appointed trustee of the personal bankruptcy as well.
Martel's personal bankruptcy stems from the fact that he personally guaranteed investments and loans made to MMAC. While bankrupt individuals are often eligible for automatic discharge from bankruptcy after nine months, PwC filed its report to oppose discharge in Martel's case.
According to PwC's report, Martel has failed to perform "specific duties" required of him as part of the bankruptcy proceeding, including turning over documents and property and communicating with the trustee.
