Victoria mortgage broker suspended as regulator cites 'misappropriated millions'

The Victoria mortgage broker who owes investors almost a quarter billion dollarshas been suspended by theCrown regulator of financialservices, citing a lack of honesty, integrity and professionalism.

Greg Martel and his company Shop Your Own Mortgage are the subjects of numerous civil claims and court-orderedreceivership proceedings trying to untangle the mystery ofwhat happened to $226 millioninmissing investor funds.

According to the B.C. Financial Services Authority (BCFSA) decision, a preliminary investigation intoMartel indicates he "...misappropriated millions of dollars of bridge loan investmentfunds for personal benefit, failed to fulfil the terms of investment agreements, continued to seek new investments after already defaulting on existing loansand failed to comply with multiple orders of the B.C. Supreme Court."

BCFSA said it began receiving complaints in early April from investors claiming Martel had defaulted on payments. Some also raised concerns that SYOM was issuingbogus T5 tax slips, leavinginvestors with significant tax bills for money that was never paid out.

More than one complainant wrote the BCFSAabout their fear of having invested in a financial fraud.

"I have come to believe that the whole thing is a Ponzi scheme. This company has been issuing fraudulent T5s on this imaginary income, resulting in big tax bills for me and also [Old Age Security] clawback," wrote a complainant.

TheBCFSAdecision notes theVictoria Police Department is investigating Martel and his company, raising the spectre the case could become criminal at some point.

Martel's whereabouts are uncertain. His lawyerRitchie Clark said he is out of the country but planning to return.

Investors and investigators have been frustrated by Martel's lack of co-operation.

Clark told CBCMartel was unable to meet a deadlinefor court-ordered documents because he was having trouble with passwords needed to access his files.

The matter is due back in B.C. Supreme Court in Vancouver on June 9.