“Poor Adam Gant” says League Investor

November 27th, 2013 · 10 Comments · League REIT Updates

sad man holding pillow 300x199 Poor Adam Gant says League Investor

This article was an email that a League Investor wrote me

League Investor’s Thoughts

According to the Times Colonist, Adam stated that it has been “very emotional and trying” to be removed from the company that he started.

Nothing in his press releases, communications to investors, or comments to the press suggest that he feels any empathy for the 3500 investors in IGW REIT (ie; Ponzi?) from whom he and Manny smooth- talked into handing over $350 million of their hard earned retirement savings.

Let’s put things in perspective. For most investors who bought into their crap… “My word is my bond”  and “We don’t take anything unless we make money for you……“very emotional and trying” would be an understatement. “Utterly devastated” is more likely how they are feeling. Some have had the largest chunk of their retirement nest egg wiped out. Many will need to re-adjust their retirement plans, sell their homes or re-enter the employment market. So much for the “golden years.”

Adam will likely have a “very comfortable” retirement at the expense of (mostly) seniors who trusted him. If IGW REIT was structured as a Ponzi from the beginning, surely a forensic audit (following the money trail) should uncover that. No amount of mismanagement could account for the complete loss of $350 million.

It sure has all the hallmarks of a Ponzi…in particular the aggressive solicitations for the IGW convertible bonds in the final 3 months before the CCAA filing…..well after an audit of the company declared League as a non-viable entity. I don’t know if criminal action or class action is being considered by some. Even if they both go to jail, I don’t know how likely it is that the investors can seize any of their personal assets.

I am looking at my options right now. I will have to live with the loss and my decision to trust in League. I would find it very difficult to know that our regulatory system allowed two white collar criminals to get away with fraud and theft.

I could not agree more

 

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10 Comments so far ↓

  • Evan Evans

    What audit of the company declared League as a non-viable entity three months before the CCAA?

    • Rachelle

      The letter dated July 19th 2013 attached to the 2012 audit by their auditor KPMG stated that they were probably not a “going concern” this was only released to the investors around October 4th 2013.

      • Tom Maxwell

        What third world government allows an investment company selling ‘silo’ LP’s to cross collateralize all the ‘projects’ for the primary lenders. And further what judge would allow said company to file for CCAP or what ever it is. This is the third bull sh_t investment I’ve had i BC and that is it. And there will be no justice for the investors who even made this entity possible. Of all the stake holders involved it is only the investors who pay for all these accounting and legal fee’s which another f__king joke from the banana republic known as BC. Seriously, the only justice is to hire some Hells Angels and do some serious neutering!

  • aj

    My opinion is that they have never been a going concern, and have since they started this pile of steaming you-know-what, known that they are a Ponzi. Adam Gant does not give a good goddamn about any of the investors. Or any of the lenders, for that matter. I remember a quote of Adams in a newspaper, something to the effect: Legal fees are cheaper than interest.

    • rickybobby

      How do you eviscerate 380 million?? even if you put out 70mm in distributions and pumped money into hole in the ground development projects that were never going to be completed that is quite a feat.

      There is simply no way that fraud and theft are not involved here.

      A smile and cufflinks will only take you so far. Adam is only just beginning to realize how much trouble he is in. if he raised money from people in the US he could be dealing w wire fraud charges as well. I see prison in their future. If there are no securities or criminal charges here it speaks to a very national and provincial stance on white collar crime.

      These provincial regulators fight tooth and nail to avoid a federal platform that will have better resources, technology, scale, and scope. They do this to retain control and keep their jobs but do nothing when fraud is laughing them right in the face.

  • Evan Evans

    Thanks Rachelle. Is this letter available online anywhere? I’d be interested in seeing the 2012 audit too.

  • Rachelle

    If you are an investor you got it from League around October 4th or so by email.

  • Jimmy

    For the record an auditor going concern comment is not saying that the company is not viable. In fact it means the opposite in that the auditors believe the company will be able to continue on.

    http://www.accountingcoach.com/terms/G/going-concern-assumption

  • Sam Samual

    League is a piece of shit! Got burned by these assholes

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