Indo-Canadian Financial Planner Charged Over Promoting Ponzi Scheme

Published: 06th February 2015 04:22 PM  |   Last Updated: 06th February 2015 04:22 PM   |  A+A-


TORONTO: An Indo-Canadian former financial planner has been charged with 32 counts of Securities Act violations for allegedly advising around 90 clients to invest in a 110 million Canadian dollars ponzi scheme, media has said.

Arvindbhai Bakorbhai Patel, who worked as a British Columbia Coast Capital Savings financial planner, convinced

about 90 investors to place nearly 29 million dollars with former notary public Rashida Samji, who is facing 28 criminal charges of fraud and theft, CBC News reported yesterday.

Patel, charged with 32 counts of Securities Act violations in Canada, is accused of advising shoppers to spend money on a fraudulent scheme operated by Samji.

"We trusted him. I feel betrayed by a friend, and also I feel morally responsible for introducing my daughter to this scheme and losing her money," Victor Vishwanathan said, who lost about 25,000 dollars, was quoted as saying in the report.

Vishwanathan and his daughter are among 15 alleged victims named in charges sworn in Surrey provincial court in January. The investors included family members, co-workers and Coast Capital customers.

Last month, the British Columbia Securities Commission fined Samji 33 million dollars for running a Ponzi scheme. She

still faces 28 criminal charges of fraud and theft, relating to 17 million dollars she allegedly defrauded from 14 victims, the report said.

According to the commission, investors believed they were providing financial backing for the expansion of foreign wineries built by the Mark Anthony Group.

Indo-Canadian tells clients to invest in Ponzi scheme;Charged Clients thought they would earn 12 per cent interest on their investment annually, with the first half of that amount paid after just one month.

The new charges carry maximum penalties of 3 million dollars and up to three years in prison.

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