British Columbia

B.C. Securities Commission has opened an online portal to gather information about Victoria man Greg Martel, who clients have alleged was running a Ponzi scheme.

B.C. Securities Commission wants to hear from investors of disgraced Victoria mortgage broker Greg Martel

Karin Larsen · CBC News

· Posted: Jun 28, 2023 8:06 PM EDT | Last Updated: June 29

Greg Martel and his company, Shop Your Own Mortgage, are now being examined by the B.C. Securities Commission criminal investigations branch. (Greg Martel/Facebook)The criminal investigations branch of British Columbia’s securities watchdog wants to hear from investors of disgraced Victoria mortgage broker Greg Martel.

The B.C. Securities Commission (BCSC) has opened an online portal to gather information from clients of Martel and his company Shop Your Own Mortgage (SYOM), also known as My Mortgage Auction Corp.

Martel owes investors $226 million but only $340,000 has been recovered and his whereabouts are uncertain. Some investors have accused him of running a Ponzi scheme, which Martel has denied.

A form posted by the BCSC asks clients to provide personal and financial information, alongside details about investments and interactions they had with Martel and SYOM.

Martel and his company were put into receivership and then bankruptcy after more than a dozen investors filed civil suits claiming they were owed money, in some cases many millions of dollars.

The scandal revolves around the private bridge loans SYOM was allegedly providing to real estate developers needing short-term financing. Investors were attracted into the scheme by the promises of sky-high interest rates that often exceeded 100 per cent on an annualized basis.

At a recent hearing in B.C. Supreme Court, receiver PricewaterhouseCoopers (PwC) said it hasn’t found any evidence to support the existence of the bridge loans. It also found that companies listed in a spreadsheet as having borrowed money from Martel and SYOM denied ever requesting or receiving a loan. 

PwC also reported repeated instances of being stymied by Martel, despite court orders for him to co-operate with the receiver and hand over documents and records.

The BCSC criminal investigations branch examines “potential quasi-criminal offences under the B.C.Securities Act and criminal offences under the Canadian Criminal Code,” according to information on the portal.

It says investigations can take several years depending on the complexity, and may or may not result in criminal charges or professional sanctions.

CBC has reached out to Martel’s lawyer for comment but did not hear back by the time of publication.

Martel was suspended by the B.C. Financial Services Authority on May 31, citing a preliminary investigation indicating Martel had “misappropriated millions of dollars of bridge loan investment funds for personal benefit.”

PwC has scheduled a first meeting of creditors on July 26 in Vancouver as part of the bankruptcy proceedings.

ABOUT THE AUTHOR

Karin Larsen is a former Olympian and award winning sports broadcaster who covers news and sports for CBC Vancouver.

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