Over one year since the investigation into Greg Martel began, the firm leading the investigation into the flow of money for his business has determined Martel was running a Ponzi scheme.
CHEK News first learned that Martel’s company, known as My Mortgage Auction (MMAC) and Shop your Own Mortgage, was put into receivership and PricewaterhouseCoopers had taken control of the assets in May 2023 when real estate agent Rick Horsland emailed in.
“I was referred by my chiropractor of all things, and I was told of these high returns on these bridge loans,” said Horsland.
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Since then, PwC has been investigating the flow of cash in Martel’s business, and filed paperwork on May 21 that says a funds flow analysis indicates Martel was operating a Ponzi scheme.
“PwC has conducted a funds flow analysis (the “FFA”) on MMAC during its 5 years of operation and has concluded that investor funds loaned to MMAC for the purpose of funding bridge loans (to be made by MMAC to borrowers) were not used to fund bridge loans, but instead were used for other purposes,” the document filed by PwC says.
“The purposes included repaying other investors, funding related companies and funding significant operating expenses. The flow of funds indicates that MMAC operated a Ponzi scheme.”
A Ponzi scheme uses investor money to pay earlier investors with the false sense that it is offering higher-than-normal returns.
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When the issue first came to light, Martel travelled to Thailand then was deported from Thailand and went to Dubai, United Arab Emirates, the documents say. His current whereabouts is unknown. CHEK News was unable to reach Martel.
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PwC says over the five years it operated, Martel spent at minimum $3.1 million on vehicles, $1.1 million for rent on multiple homes, $261,000 on restaurant meals and events, $200,000 on watches and jewelry, $150,000 on recreation, $59,000 on fitness and sports, and $50,000 on wine and vineyard events.
Additionally, the report shows that Martel has declared $9.3 million in secured loans and $293.6 million in unsecured loans, however, PwC has only been able to prove $7.9 million in secured loans.
https://www.cheknews...scheme-1206436/
Edited by Victoria Watcher, 28 May 2024 - 02:30 AM.