Though the focus of the trading scam perpetrated by the Gang of Four* has been the theft of the victims' assets in Grand Cayman, there is a Canadian aspect to the scandal that deserves attention. When Gang ringleader Sharon Lexa Lamb reportedly created the bogus transfer document, which described the Cayman shell company, B & Capital, Ltd., as a "financial institution," most observers believe that she committed bank fraud, under Canadian Law. B & C not only had no banking license, it had no assets, and was operated by a known fraudster, Ryan Bateman, a Canadian national, formerly of Alberta.
The fact that she had been terminated, almost two years earlier, as Senior Vice President of Dundee Merchant Bank, and continued t hold herself out to the bank's clients as the contact person, for banking business, is also believed to constitute bank fraud in Canada. Remember, Dundee Merchant Bank is a wholly-owned subsidiary of Dundee Corporation, a Canadian company.
Finally, when Paul Mascard, an officer of Northland Wealth Management, Inc., told the lead plaintiff in the Cayman civil suit, who was Northland's client, that B & C Capital, where his funds had been transferred to, was "a bank," that affirmative statement could constitute bank fraud. Northland has totally failed to cooperate with the plaintiff, or his counsel, stonewalling all inquiries and requests for client documents.
Watch for further developments in this $450m scandal, in Canada, in the coming days. The plaintiff has already met with regulators, and has advised that he, and many of the other victims, will be seeking redress, and damages, and taking such action as will protect their interests, in Canada.
* Sharon Lexa Lamb, Ryan Bateman, Fernando Mota Mendes, and Derek Buntain, constitute the Cayman Gang of Four.