A regular reader of this blog sent me an email describing how she and her husband had been defrauded of $200,000. She agreed to have her story posted here. I’ve changed some names, but the story is absolutely true and absolutely heart-breaking.
This is in response to your blog post: http://bondsareforlosers.com/earl-jones
I love your blog. Definitely one of my favorites. I have no idea what you want to do with this information. I am completely okay with you sharing it. It is quite cathartic to write it out and see where we’ve been.
We have just had our dealer/agent removed from our account. It takes a great deal of work (I worked on it off and on for about 6 months). We no longer have the unregistered agents on our account although I believe that other people have them on their accounts.
I have a long sad story about the beginning of our investment career. We were defrauded of $200,000 by John Doe out of Quebec and his partners John Doe II and John Doe III. They are being investigated (with our help) by the RCMP. There is also a civil case in progress to sue the Errors and Omissions Insurance Company because John Doe was a registered Mortgage Broker and John Doe II was a CA. The reason I am telling you this is because we have a bit of left over yuckiness due to that bad investment. John Doe II invested our money in an investment account. The account dealer/agent is Jimmy Financial, his daughter Jane Financial is also an advisor. Neither of them show up in that Ontario Database. Their company is Investment Company One (Jimmy Financial) and Investment Company Two (Jane Financial). The addresses are as follows:
***Omitted*** But both companies are registered to the same building. ****
Now we didn’t have any clue that the the dealer/Agent was at all associated with John Doe I, John Doe II, or John Doe III until Jimmy Financial hired an assistant or another agent (I am not sure what her qualifications are) who was John Doe I, II, and III’s assistant — Debbie Dallas, who the RCMP guy let slip is also under investigation. At that point I tried to take Jimmy Financial and Jane Financial off of our account. It took some doing because most of the account was loaned out to people for their mortgage (self-directed mortgage) and we could not simply close or transfer the account. As well it was complicated by the fact that the company that administers our account only deals with dealer/agents (but is not allowed to recommend any), another Ontario department is supposed to recommend replacement dealer/agents but they did not have any way to know which ones handle the kind of investments we are using. Eventually instead of replacing the dealer/agent we are now represented by the account administrator’s general helpline. I cannot buy stocks or mutual funds until I get that fixed but that is a problem for another day.
Thank you for letting me share the story.
That is gut-wrenching just to hear, I cannot imagine actually going through a situation like this. My heart goes out to you, and I hope others are inspired to double check their advisor’s credentials after having read this post.