Hundreds of investors worried about their savings after Victoria mortgage broker put in receivership

Over 400 concerned investors — some who fear they have lost their life savings — attended B.C. Supreme Court in Vancouver Tuesday to follow proceedings in a case one claimant has described as a "Ponzi-like investment scheme."

Victoria, B.C., mortgage broker Gregory Joseph Martel and My Mortgage Auction Corp. (MMAC), which also does business as Shop Your Own Mortgage, are at the centre of the case. Martel is sole director of MMAC and sells mortgage investments promising high rates of return. 

Martel and his company have been hit with numerous lawsuits from individuals and businesses. On May 4, MMAC was put into a receivership overseen by Price Waterhouse Coopers.

Tuesday's proceedings took place "ex parte," meaning without the participation of Martel or his representative. Justice Shelley Fitzpatrick heard that process servers have been unable to find Martel in Victoria. Instead, a court summons was sent via email, which the court heard has not had a response.

Peter Rubin, counsel for the receiver, said Martel's RBC bank account showed $58 million in deposits followed by $58 million in withdrawals, leaving a remaining balance of $279. 

Two PWC reports presented in court also noted:

Over 350 investors tuned in to the courtroom via video link, and another 50 attended in person. Fitzpatrick allowed a handful to speak. 

"Members of the general public were enticed by promises of big returns," said Kira Kelly of Victoria. "I really hope I haven't lost my life savings."

Ross Buck said he and others have gone through the formal MMAC process to have their investments paid out instead of reinvested. So far, they've received nothing. 

"A number of us have been waiting months for payout. That has not happened," Buck told the court.

David LeClaire said Martel has been online as recently as a few weeks ago, "assuring us things are OK" while continuing to solicit money.

Videos of Martel posted online appear to show him trying to reassure investors who want their money out. 

"I know I've promised you guys multiple dates ... Everyone's going to get paid," he said in one video.

In an affidavit, William Belland of Nanaimo said he was convinced by MMAC CEO Julie Lyons to invest over $318,000 on March 9, 2023, for a term of less than three weeks. Belland said Lyons did not inform him the company was already defaulting on earlier investors.