As the court hearings into the allegations against Greg Martel and his company Shop Your Own Mortgage Corp. continue, receiver PricewaterhouseCoopers is now seeking to have Martel declared guilty of contempt of court and to have a warrant issued to apprehend Martel and bring him before the courts.
Martel and his company have been hit with 11 civil lawsuits this year from lenders who say they haven’t been paid. While one of the 11 has since been settled out of court, the total being claimed is just shy of $28 million. Overall, according to the B.C. Supreme Court, Martel owes hundreds of investors a total of $226 million.
In May, a B.C. Supreme Court justice put My Mortgage Auction Corp. (MMAC), doing business as Shop Your Own Mortgage into receivership, appointing firm PricewaterhouseCoopers to take control of all of the company’s assets and property, effective immediately.
On Thursday, B.C. Supreme Court granted a bankruptcy order against Martel, which follows after his company was assigned into bankruptcy in June.
Next, on Sept. 11 the court will hear an application from PricewaterhouseCoopers to have Martel declared in contempt of court and to issue a warrant for him.
In the application, PricewaterhouseCoopers (PwC) alleges that he is in breach of three separate orders by the court and has had several months to comply with the orders.
“Mr. Martel’s offence is not only contemptuous but also has the effect of prejudicing PwC in its mandate, as Court-appointed Receiver, to recover funds for MMAC’s creditors,” the application says. “Respectfully, it is appropriate for this Court to rebuke Mr. Martel’s conduct and find him guilty of contempt of Court.”
Martel’s lawyers previously told the courts he was living in Thailand but it is unclear if he is still there.
READ PREVIOUS:
- MAY 5: Victoria mortgage company put in receivership amid flurry of lawsuits
- MAY 9: ‘Show me the money’: Receivership hearing resumes for Victoria businessman Greg Martel
- MAY 10: My Mortgage Auction investor fears she may have lost retirement savings
- MAY 17: Court case against Greg Martel continues, receiver’s requests for information go unanswered
- MAY 31: Owner of Shop Your Own Mortgage hit with suspension order: BCFSA
- JUNE 7: ‘It’s just a lie’: Saanich contractor says claims he borrowed money from Greg Martel’s company are false
- JUNE 10: Greg Martel’s lawyer quits, company assigned into bankruptcy
- JUNE 28: B.C. Securities Commission launches dedicated inquiry form for Shop Your Own Mortgage
-With files from CHEK’s April Lawrence
Laura Brougham
