The latest receivership hearing for Greg Martel got underway in Vancouver Friday morning with a significant turn of events. Martel’s lawyer Ritchie Clark told the courts he terminated his retainer with Martel on Tuesday, saying he’s withdrawing as counsel for “ethical reasons” although he didn’t specify what the reasons were.
The hearing at the Vancouver Law Courts highlighted the latest findings from receiver PricewaterhouseCooper’s (PwC) fourth report into Martel’s finances. Once again it focused on Martel’s failure to cooperate and provide key information, particularly about the so-called ‘bridge loans’ people invested millions in.
READ MORE: Court case against Greg Martel continues, receiver’s requests for information go unanswered
“Mr. Martel has not provided the bridge loan details for a single bridge loan, not one,” PwC lawyer Peter Rubin told the judge. “At the end of the day, unfortunately, it looks like the receiver is going to have to bring a contempt application.”
Saanich contractor Scott Hutchinson came forward to CHEK News this week saying he showed up on a list claiming he borrowed more than $13 million from Martel’s company, something he called a complete fabrication.
“I know our part of it is just a lie,” Hutchinson said.
And he isn’t alone. Other companies on the list CHEK News spoke to insist they have never done business with Martel and didn’t borrow money from him or his company.
Martel has previously denied any allegations he was operating a Ponzi scheme and in an email sent to PwC last week, included in their latest report, Martel states he’s been locked out of his accounts by an investor named Dan and that it’s currently impossible to provide the information they’re asking for.
In the email Martel states that he’s filed a police report and that the FBI are investigating. He also pushes back suggesting PwC is at fault.
“This breach is a direct result of PWC’s lack of protection of the company’s secure information, by terminating all staff
including the staff that protects our company from this exact situation from happening,” the email reads.
“I’ve also contacted another attorney to work with Richite (sic) to file charges to PWC and a formal complaint to the judge and this was handled from the very beginning.”
While Martel’s previous lawyer has said he’s in Thailand, the receiver says it can’t confirm if he’s still there, or where he might be. With two new lawyers hired only late Thursday night Martel has been given more time to produce the information. No date has been set yet for a possible contempt application.
So far the receiver says it’s only been able to find roughly $350,000 of the $226 million owed to investors.
April Lawrence
