B.C. judge OKs investor profits ‘clawback’ in $316M Ponzi scheme

A B.C. judge has approved a plan to “claw back” money from net winners of a Ponzi scheme run by a Victoria, B.C., mortgage broker who defrauded hundreds of investors out of more than $316 million. 

In an Aug. 6 ruling, B.C. Supreme Court Justice Shelley Fitzpatrick approved a plan put forward by PricewaterhouseCoopers Inc. (PwC) — the appointed trustee — to recover funds for victims of the scheme carried out by Gregory Joseph Martel.

The ruling confirmed Martel had run Mortgage Auction Corp. as a Ponzi scheme, with investor funds used to pay off past investors and fund Martel’s lifestyle, instead of funding promised real estate bridge loans. 

The

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