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