The plaintiffs invested $300,000 in an offshore investment program after being advised by the defendant, who represented the investment as secure and guaranteed to yield a 17.52% return.
The defendant failed to disclose that the investment scheme was under investigation by the Ontario Securities Commission and that he was receiving undisclosed commissions for referring investors.
The court found that the defendant had held himself out as a financial advisor and stood in a fiduciary relationship with the plaintiffs.
By recommending the investment, failing to disclose conflicts of interest, and concealing regulatory investigations, the defendant breached his fiduciary obligations.
The court awarded equitable compensation for the plaintiffs’ lost investment with pre‑judgment interest and held both the individual defendant and his corporation jointly and severally liable.
