Canadian $17M Ponzi settlement reached

March 6, 2012 at 1:43 PM

MONTREAL, March 6 (UPI) -- Some 158 investors will divide up $17 million in damages from the Royal Bank of Canada in an out-of-court Ponzi fraud agreement announced by the bank Tuesday.

The settlement relates to the conviction of former financial adviser Earl Jones, who used a Montreal-area RBC branch to run his fraud of paying old investors with new investors' money.

Jones was convicted of theft and fraud and sentenced to an 11-year prison term in February 2010, The (Montreal) Gazette said.

The investors who lost money are mostly elderly and originally sought $40 million from the bank, which was alleged to be aware of Jones' criminal activities since 2001.

To avoid a class action trial, RBC offered the victims $12.5 million in July, which was refused.

Despite increasing the settlement to $17 million, the bank said in its brief statement it wasn't admitting to wrongdoing.

"RBC has closely examined its role in providing Earl Jones with a bank account and is satisfied that it was not negligent," the statement said.

The offer and acceptance are scheduled to be formalized in a Quebec Superior Court hearing March 14, the Canadian Broadcasting Corp. said.

Follow us on Facebook, Twitter, and Instagram for more news from
Related UPI Stories
share with facebook
share with twitter
Topics: Earl Jones
Trending Stories