Lawrence Heath, a 90-year old retired prominent Canadian attorney, and Queen's Counsel, has filed suit, in the Superior Court of Justice, in Ontario, against Northland Wealth Management, Inc., which was the plaintiff's investment counselor, portfolio manager, and custodian of his assets. The plaintiff had transferred his multi-million dollar account, from Leon Frazer & Associates, Inc., to Northland, in 2013, after Leon Frazer director William Tynkaluk falsely claimed that upcoming Canadian legislation would result in increased taxes upon wealth situated in Canada*. Tynkaluk recommended Northland, whose principals were former Leon Frazer traders who had left under a cloud, with reported allegations of misconduct.
Northland has indicated to the plaintiff that his assets would be held in a special Dundee Merchant Bank account, under his name, at the Bank of Butterfield, in the Cayman Islands. In truth and in fact, some of the funds were transferred to a shell company, B & C Capital, Limited, which was falsely represented to be a financial institution, owned and controlled by a Canadian securities trader, Ryan Bateman, with a record of securities fraud, and a defendant in a criminal proceeding in Grand Cayman. Bateman would later become a fugitive from justice, which is his current status. The plaintiff's assets then disappeared, and remain missing, notwithstanding Northland's fiduciary relationship with the plaintiff.
Some securities are reportedly under the control of Northland, who refuses to disclose their location or status. Other assets of the plaintiff could not be accounted for, notwithstanding that the plaintiff, and his counsel, made repeated demands upon Northland for client records, and an accounting of his funds and securities. The plaintiff repeatedly was denied copies of his records, notwithstanding multiple requests, made to Northland principals, Paul Mascard, and Arthur Salzer.
|Paul Mascard and Arthur Salzer|
At one point, Northland advised that it would not furnish records for a non-client ( although the fiduciary relationship existed at that time), and subsequently, the company stated that the plaintiff was a "former"client, and that it would not furnish any records.
Inquiries directed to Northland principal Paul Mascard were directed to former Dundee Merchant Bank Senior Vice President, Sharon Lexa Lamb, whom we have identified as the ringleader of the notorious Cayman Gang of Four** fraud syndicate, who then advised plaintiff to to back to Paul Mascard, to obtain any information about his accounts and assets, which were then missing and unaccounted for. Lamb and Dundee Bank are defendants in a separate civil action for damages, brought by the plaintiff, in the Cayman Islands. Lawrence Heath, etc. vs. Dundee Merchant Bank and Sharon Lexa Lamb, cause no. 202 of 2015 ( Grand Court, C.I.)
|Sharon Lexa Lamb|
An estimate, obtained from the Cayman Islands Monetary Authority, stated that $400-$450m, of assets of Canadian and American pensioners, was missing from B & C Capital accounts, and the company was insolvent. The case is one of the Cayman islands' largest fraud scandals in recent memory, but it is only one of thirteen such major frauds that have occurred in the offshore banking center; there have been no significant investor recoveries in any of them, and the funds of the plaintiff, and others, cannot be found.
Northland continues to refuse to turn over any records of plaintiff's accounts there to his legal representatives, including his contract with Northland. Thereafter, the plaintiff brought this action, to compel production of all the records of his account, and for other purposes. The plaintiff has asserted that the defendant committed an extraordinary breach of its fiduciary duties to him, and to other investors.
A hearing has been set by the Court for June 2, 2016, in Toronto. Readers who wish to review the complete text of the Application will find it below the footnotes.
*Lawrence Heath vs. Leon Frazer and Associates, Inc., Case No.: CV-16-548521 ( Superior Ct. Ontario).
** The Cayman Gang of Four are:
Sharon Lexa Lamb, former Sr. Vice President, Dundee Merchant Bank; from the Isle of Man.
Derek Buntain, former President, Dundee Merchant Bank; a Canadian national.
Ryan Bateman; a Canadian national.
Fernando Motto Mendes; a Portuguese national.
|Lamb, Bateman, Buntain|