William Tynkaluk, then the Chairman of the Board, notified the client that the TD Bank subsidiary, where the client's assets under LF management were held, notified him, and then-Managing Director Lyle Stein, that all his TD accounts would be closed. The purported reason was the client's investment in a money service business in Panama, and Tynkaluk promised that he would deliver that letter to him.
Although no letter was ever produced, Leon Frazer immediately, transferred all the client's funds, and assets, to Cayman Islands-based Dundee Merchant Bank, which was a wholly-owned subsidiary of Canada's Dundee Corporation, whose own chairman had been publicly quoted as declaring that, due to competition, the bank was in serious difficulty. The truth was much worse; the bank was reportedly insolvent, and was desperate need of funds. We wonder how much in the way of "financial incentives" Tynkaluk and Stein received to accomplish this fraud.
Dundee never returned to solvency, and later mysteriously closed, without any liquidation proceedings being held, to determine where its remaining assets went. The local regulator, the Cayman Islands Monetary Association (CIMA), never ordered it to liquidate, most likely because of the scandal that its huge losses would generate, and the resultant loss of confidence in the Cayman Islands as a financial center.
The rest is history; the client lost an estimated $13m, which has never been recovered, attributed to the financial criminals who compose the Cayman Gang of Four, ex- Dundee officer Sharon Lexa Lamb, ex-Dundee officer Derek Buntain, stock trader Ryan Bateman, and Leon Frazer Director, William Tynkaluk.
Back to the story: in truth and fact, the real reason TD closed the client's accounts is that Leon Frazer failed to file annual corporate tax returns for the client, which was its responsibility as a fiduciary, and to deliver copies to TD. There was NO Panama issue, just a ploy, set up by William Tynkaluk, and Lyle Stein, to be able to divert the client's assets to Dundee, which was in financial trouble. I have seen the letter from Dundee, and it makes no such claim. The truth is TD did not receive tax returns, and therefore, closed the client's five accounts, as a compliance action.
Should Wiliam Buntain and Lyle Stein be charged, convicted, and imprisoned for their actions, and what about their company, Leon Frazer & Associates, Inc. ?
*Willaud Corporation et al vs. Leon Frazer & Associates, Inc., Superior Court of Ontario.