$27M investment fraud preyed on retirees, alleged victim says

Many of the alleged victims of two Calgary men accused of orchestrating a $27-million fraud were retirees who lost their life savings, claims one former investor.

JonEdmundsis among 84 investors involved in a lawsuit against Ken Fowler.

• 2 Calgary men wanted for securities fraud
• Listen to theinterview with Edmundson the Calgary Eyeopener below:

An arrest warrant wasissued forFowler on Monday, along with his alleged accomplice Douglas Schneider.

Theyare accused of sellingfraudulent securities through their company Investment Exchange Mortgage Corporation, or TIE Mortgage and makingmisleading statements to investors.

The Alberta Securities Commission (ASC)says the whereabouts of Fowler and Schneider are notknown.

Edmunds, who was promised an 18per cent return on his $100,000 investment, said many of the allegedvictims were left with nothing.

Im an accountant.I should have known better. I feel very bad about the decision I made, but the reason Im continuing on this is seeing these retirees being taken advantage of, he said.

One woman in particular, shes 80-years-old[andher] husband died about three or four years agoshes left with nothing. She had invested apparently $400,000. Shes now living on CPP and Old Age.

The money Fowler raised through TIE Mortgage was supposed to be invested in short-term loans, according to a financial inspector appointed by a Court of Queens Bench judge last year.

Alleged victim wants justice

JonMoroz, a lawyer representing many of those suing Fowler for fraud,saidthey learned throughthe inspector thatthe underlying business didn't exist.

"As is set out in the fraudulent financial documents, the funds were stated to be used to place mortgages against properties and that was the stated purpose;however, that simply didn't exist," he said.

ASChad issueda cease-trading order for the company in November 2012.

But court documents claimFowler was using some of the money to finance his own lavish lifestyle. The claims have not yetbeen proven in court.

He bought his wife a diamond ring for $125,000, bought himself a Porschenot sure what he paid for it bought a house down in Palm Springs, that type of thingtrips to Switzerland, Edmunds said.

While he has given up hope of recouping his investment, Edmunds said he wantsjustice.

This is the shame that I can see, he took this money from people who couldnt afford to lose it, he said.