Tynkaluk, who has admitted his participation in what was a criminal enterprise, asserted, to both victims of the scheme, as well as other witnesses, and who has agreed to cooperate, and testify, in any future court proceeding, stated that he & Ned Goodman contrived a fictitious threat, to convince wealthy Canadians who had assets at Leon Frazer, to move their wealth offshore. This scheme reportedly was conceived by Goodman, at a closed meeting of investment advisers, that Tykaluk, among others, attended. They thereafter advised the victims that Canada was about to change its laws, and that their liquid assets, as well as securities, would be targeted for additional taxation. There was no factual basis for this "opinion," but it served to motivate the victims to follow their advice. Tykaluk facilitated the movement of funds out of Leon Frazer, and out of the Canadian banks where they had been safely on deposit.
The illicit trading, and undisclosed taking of profits, only a small percentage of which were actually distributed to the clients, followed. The scope of this criminal enterprise only became known when investors/victims asked for disbursement of their money, only to be told that it was with the Gang of Four fugitive, the stock trader Ryan Bateman, who absconded from a Cayman criminal case, and who is also missing, with their money.