As reported by the Globe and Mail, CBC and other sources, the RCMP has charged two people after at least 160 investors were allegedly defrauded of more than $21-million. The RCMP has reported that from 2006 to 2010 investors were led to believe they could obtain substantial returns on their investments through day trading and resort and development properties. The RCMP say the majority of the money was not invested by the accused persons as represented and was instead re-directed to other non-interest paying schemes. It is unclear from the reporting whether steps were taken to freeze the assets at issue in this alleged investment fraud. This is a critical step to preserve recovery for potential investors. Recovery possibilities may include the appointment of a receiver, a freeze-order or mareva injunction, and various tracing remedies that may be available. It may also be possible for the investors to recover from professional advisors that may have been involved in the alleged scheme or facilitated it. Such advisors may have available insurance coverage.
