Self-proclaimed financier Earl Jones, accused of running a massive Ponzi scheme, siphoned off at least $12.3 million from his firm for personal expenses including homes, cars and even his children's tuition, according to a forensic audit released on Tuesday.
The interim receiver, RSM Richter, said Jones and his wife Maxine were paid $2.3 million, though just $15,000 has been found in the corporate accounts of the Earl Jones Consultant and Administration Corp.
Between 100 and 150 investors have accused Jones of bilking them out of millions of dollars, while Quebec's financial securities regulator says the amount could be as high as $50 million.
Jones' company declared bankruptcy last month and Jones is expected to file for personal bankruptcy at a hearing on Wednesday.
Details
Jones took out nearly $3 million in payments from his company as well as $593,000 for his children's schooling and other expenses, $169,000 for car purchases, and a sum of $497,000 that was later transferred to Bermuda, says the report.
The audit was released at the first meeting of Jones' creditors.
The auditor says Jones also appears to have cashed in his RRSPs, an insurance policy and investments earlier this year.
The sums withdrawn were likely higher than $12.3 million and could eventually total $20 million, according to the auditor.
That figure does not include transfers before 1987.
Massive alleged fraud
Bankruptcy trustee Gilles Robillard also says banking records can't be found for the years 2000 to 2008.
Jones has been charged with four counts each of fraud and theft and has been ordered to appear in court Sept. 28.
RSM Richter has written to 93 parties to inquire about dealings they had with Jones, including 50 banks in Canada, the United States, Bermuda, Britain, Switzerland and the Cayman Islands.
The parties have also been asked to freeze all of his accounts.
- With Files from The Canadian Press -
