Former clients of Earl Jones have filed a civil lawsuit against the Royal Bank of Canada because, they allege, the bank allowed the fraud artist to use an in-trust account for personal reasons.
The summary of a November 2001 conversation between an employee at RBC and Earl Jones was obtained by CTV News, which points to the employee warning Jones of his financial wrongdoings.
"I told him this is not a formal trust account and he could get himself in trouble because this is just a personal account in his name alone, the intrust (sic) does not mean anything in this case," reads the summary.
Accountants looking into the case say the bank should have red-flagged the account if suspicious activity was taking place.
In a statement released Friday, the bank claims it was not aware of any unscrupulous activity.
"We were deceived by Mr. Jones, just as his clients were. Until 2009, there was nothing to signal that Mr. Jones was anything other than a legitimate and successful businessman," read the statement.
Last month, Jones pleaded guilty to defrauding 158 clients out of $50 million.
