Victoria mortgage broker suspended as regulator cites 'misappropriated millions'

The Victoria mortgage broker who owes investors almost a quarter billion dollars has been suspended by the Crown regulator of financial services, 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-ordered receivership proceedings trying to untangle the mystery of what happened to $226 million in missing investor funds.

According to the B.C. Financial Services Authority (BCFSA) decision, a preliminary investigation into Martel indicates he "...misappropriated millions of dollars of bridge loan investment funds for personal benefit, failed to fulfil the terms of investment agreements, continued to seek new investments after already defaulting on existing loans and 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 issuing bogus T5 tax slips, leaving investors with significant tax bills for money that was never paid out.

More than one complainant wrote the BCFSA about 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.

The BCFSA decision notes the Victoria 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 lawyer Ritchie 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 CBC Martel was unable to meet a deadline for 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.