The trustee appointed to manage the bankruptcies of a Victoria mortgage company and its owner has uncovered shocking revelations of fraudulent activities and a massive Ponzi scheme. PricewaterhouseCoopers (PwC) submitted a report to the B.C. Supreme Court and the federal Office of the Superintendent of Bankruptcy detailing the trustee’s opposition to Greg Martel’s discharge from bankruptcy.
Martel, who operated My Mortgage Auction Corp (MMAC) under the name “Shop Your Own Mortgage,” is facing claims from over 930 creditors totaling more than $317 million. The trustee’s report reveals that Martel failed to cooperate with the bankruptcy proceedings, including turning over documents and property, leading to the opposition to his discharge.
Furthermore, PwC’s report outlines numerous offences committed by Martel under the federal Bankruptcy and Insolvency Act, including fraudulent disposition of property, material omission in statements, and obtaining credit through false representations. The report also highlights Martel’s extravagant spending habits, including millions on travel, vehicles, rent, and luxury items.
The trustee’s report paints a grim picture for investors, stating that Martel’s current assets are worth less than 50 cents for every dollar of his liabilities. The B.C. Financial Services Authority suspended Martel’s mortgage broker license last year due to evidence of prejudicial business practices, and investigations by the B.C. Securities Commission and Victoria Police Department are ongoing.
Ultimately, the trustee does not anticipate any recovery for investors from Martel or MMAC’s bankruptcy estates. The case serves as a cautionary tale of financial misconduct and the devastating impact of Ponzi schemes on unsuspecting creditors. The investigation into Martel’s activities continues, shedding light on the complexities of white-collar crime and the importance of regulatory oversight in the financial industry.