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Investors File Class Action Against RBC and BCFSA Over Greg Martel Ponzi Scheme

Lawsuit alleges the bank and regulator failed to detect red flags, enabling $301M fraud that left over 1,200 investors with significant losses.

Greg Martel in 2022.
A 2023 image of Greg Martel taken from an online meeting where he gave investors assurances they would receive the money they were owed. The Ponzi scheme he was running collapsed soon after, and Martel's whereabouts remain unknown.

Overview

  • Three representative plaintiffs have filed a class action in B.C. Supreme Court on behalf of 1,229 investors who lost $149M in Greg Martel's Ponzi scheme.
  • The lawsuit claims RBC and the B.C. Financial Services Authority neglected their duties to identify and address clear warning signs of fraudulent activity.
  • Plaintiffs allege RBC ignored suspicious account activity, including high-volume deposits inconsistent with a mortgage brokerage business and circular fund flows.
  • The BCFSA is accused of conducting superficial investigations in 2017 and 2021, failing to act on complaints that could have exposed the scheme earlier.
  • Martel remains at large with warrants issued for his arrest in Canada and the U.S., while court-appointed receiver PwC has identified $91M diverted for personal use.