‘All the stages of grief’: Investors speak out about B.C. Ponzi nightmare
Lana McKenzie, a mother from Courtenay, B.C., never imagined she would become a headline act on the TV series “Hustlers Gamblers Crooks.” Her appearance on the show last year shed light on the nightmare she faced after being conned out of $330,000 by the infamous Ponzi schemer Greg Martel.
Despite the opportunity to share her story on a popular Discovery Channel series, McKenzie expressed that she would have preferred to avoid the loss altogether. She made a condition not to mention Martel’s name during her appearance, emphasizing that he did not deserve any recognition for his actions.
Martel’s fraudulent activities spanned from 2018 to 2023, during which he amassed $301 million from investors. However, only $210 million was paid out, with the remaining $91 million squandered on failed business ventures, options trading losses, and a lavish lifestyle.
In 2023, Martel disappeared as lawsuits piled up from disgruntled investors seeking restitution. While there have been speculations about his whereabouts, ranging from Thailand to Dubai, his current location remains unknown. Authorities have issued warrants for his arrest for contempt of court, but he has yet to face criminal charges.
Recently, bankruptcy proceedings for Martel’s company, My Mortgage Auction Corp., entered the clawback phase. Investors who profited from the scheme are now required to return their gains, minus their initial investment, to a bankruptcy pool. This process aims to recover funds for the 1,229 investors who suffered losses, although the actual returns are expected to be minimal.
Among the investors facing clawbacks, discrepancies in the calculations have been raised. Damian Richards, a resident of Quadra Island, disputes the amount he is supposed to repay, citing inconsistencies in PricewaterhouseCoopers’ (PwC) assessments. Richards, who invested an inheritance in 2020, expressed frustration over the taxes paid on unrealized gains due to Martel’s fraudulent tax slips.
The emotional toll of the loss has left many investors grappling with feelings of anger, resentment, and denial. Richards described the experience as a journey through the stages of grief, highlighting the devastating impact on his financial stability.
As the bankruptcy proceedings continue in B.C. Supreme Court, investors like McKenzie and Richards hope for a fair resolution to the financial turmoil caused by Martel’s deceitful actions. The quest for justice and accountability remains paramount as they seek closure and restitution for their losses.
