David Baines' muckraking

[active]

He was not really a ‘nobody’ when going to Berkshire. He was already the local bigwig of Investors Group with a waterfront house in Cordova Bay.

Victoria as you know is a very clubby place. Everybody knows everybody, I think this is somewhat disappearing right now but 20 years ago and even 10 years ago this was certainly the case.

This is also a city of do-gooders. Ian pretending to donate a lot gave him an entrée to these folks, including Alex Sr., who is really a very nice and humble gentleman. They also all love boating and going to Desolation Sound.

The stars you mention were more friends of friends as I see it.

[spatz]

I guess the term "nobody" is relative to where he wound up.

I don't disagree with any of your points. I don't think that anyone will ever know the real story so speculation is the best we will get.

Had I been a betting person however, I would have bet that Ian would have found his way to a beach somewhere rather than Seattle. If you recall, there was an anonymous $5M donor that was willing to help Ian out with investors as long as his/her indentity was not revealed. Most people thought that the $5M was from Ian's own bankroll of course.

[beenaround]

I think that his brother lives in Seattle.

[Shakespeare]

Lee-chin in the land of the Thow affair

[worthy]

And I couldn't give away food to a starving man!

Quite a guy. (Not to worry. There are plenty more like him.)

[DanH]

BCSC: Former Berkshire Investment Group salesperson Ian Thow committed fraud

[kcowan]

BCSC: Former Berkshire Investment Group salesperson Ian Thow committed fraud

PT Barnum had coined a phrase for this:

Thow told the clients they could expect returns ranging from 32 per cent to 192 per cent and that the investments were safe because they were secured by mortgages.

Wow imagine a "safe" return of 32% to 192%. Migawd this straight jacket called honesty sure gets in the way of making money.

As an aside, I once had a client who confided in me that he was getting 35% per annum on a special offshore banking deal. I said that I hoped it would turn out well and that he should call me as soon as he could claim that it had worked out. I never heard from him again. And this guy was pretty smart. But PT Barnum was right all along. Greed is a sickness. A deadly sin even.

[kcowan]

BTW the expression secured by mortgages has a much more coersive connotation thanks the the bad boys on Wall Street trying to paper over their SIV misadventures. I wonder when their house of cards will fall down?

[Bylo Selhi]

BCSC finds fund salesman guilty of fraud

"This case represents one of the most callous and audacious frauds this province has seen," the [BCSC] panel said. "Thow preyed on his clients by offering them non-existent securities and instead using the funds to support his lavish lifestyle. He took their money and betrayed their trust. He has left a trail of financial devastation and heartbreak."...

Mr. Thow still faces a raft of lawsuits from former clients. The RCMP is also investigating his case, although no charges have been laid. As well, the Mutual Fund Dealers Association will hold a hearing Oct. 22 in Vancouver to consider a settlement agreement it has reached with Berkshire, which is accused of failing to adequately supervise Mr. Thow while he worked for the company.

Thow got help with his scam

It is appropriate to cast Thow as the villain, but it's trite to dismiss the victims as dupes who were too stupid or greedy to know better. Evidence arising from the BCSC hearing shows the story is much more complicated. What might have been easily exposed as a fraud-in-progress was heavily masked by the trappings of legitimacy.

As noted in previous columns, one of those trappings was Thow's status with Berkshire Investment Group...

Then there was his relationship with Berkshire's principal, Michael Lee Chin...

Another thing that gave Thow legitimacy, the panel noted, was his wealth...

Then there was Thow's tight relationship with ScotiaBank...

Then there was the legitimacy provided by the media, which lionized Thow for his community endeavours and philanthropy...

I am not suggesting that anybody other than Thow is legally culpable. I am simply saying that, in financial matters, people should always be skeptical. In this case, several key players -- his employer, his boss, the bank, local charities and media -- accepted Thow at face value. This acceptance provided a basis for investors to trust him. It was a mistake that everybody, not just investors, should acknowledge.

[Norbert Schlenker]

The Mutual Fund Dealers Association of Canada (MFDA) has imposed a $500,000 fine and a further $50,000 in costs against Berkshire Investment Group, now owned by Manulife Financial Corp. The settlement stems from accusations that the firm should have been aware of the actions of former vice-president Ian Thow, who stands accused of stealing millions from investors.

But the second hearing to reach an agreement between MFDA and Berkshire in Vancouver Thursday was greeted with derision by upset investors. The association did not impose any further business restriction or suspension, as it had the power to do on Berkshire, and said it was the heaviest fine it has ever imposed.
Advertisement

Out of pocket investors were hoping the association would restrict the ability of the firm to operate for a period, saying that would be a far more effective penalty than a cash fine and send a strong message across Canada that investors can expect to be protected.

Brad, Daryl and Don Goodwin of Vancouver who lost over $1 million described the settlement "as a joke. It's self-regulatory working at its best. This doesn't cut it." ...

http://www.advisor.ca/news/article.jsp? ... 91711_4836

[beenaround]

First of all, I think Thow is a despicable person.

But really, do these people have an iota of understanding on the ramificaions of closing down Berkshire. What twits! How would the older clients get their monthly payments? What is a client has an emergency financial situation and needs to sell some investments. What about the impact on the other hundreds of thousand Berkshire customers? What about the Berkshire staff?

They made themselves look absolutley stupid withs such a suggestion. Some would/could say it is no wonder Thow was able to dupe them.

Clue in people.

[Shakespeare]

Former B.C. mutual fund salesman Ian Thow fined $6 million

The British Columbia Securities Commission fined former mutual fund salesman Ian Gregory Thow $6 million and barred him from the province's capital markets for life on Friday.

The securities commission may never get to collect the record fine it has imposed. The regulatory body typically does not collect fines in cases like these, so investors can recover as much as possible.

[Shakespeare]

B.C. mutual funds dealer charged with fraud

The Vancouver Integrated Market Enforcement Team, along with Victoria police and the FBI, have formally charged Ian Thow with 25 counts of fraud over $5,000....

[Acting Sgt. Sammy Wu] said police are in the process of locating Mr. Thow so he can appear in court.

[oldguy]

[Acting Sgt. Sammy Wu] said police are in the process of locating Mr. Thow so he can appear in court.

Good Luck

[active]

No luck needed.

http://en.wikipedia.org/wiki/Mercer_Island,_Washington

He is a big fellow and easy to spot.

[parvus]

Doesn't he have a propeller head?

[Shakespeare]

Ex-Thow clients upset

"Many of Thow's victims also made complaints to the RCMP and did so months before Berkshire even would admit he was an employee. [The IMET] statement makes it appear that Berkshire was the moving force behind charging Thow, when in fact, for months Berkshire distanced themselves and denied it was their problem," the client said.

"Please don't let your readers forget the impact on and the work done by many of Thow's victims to get to this stage of charging Thow."

[Bylo Selhi]

Since Manulife had nothing to do with Thow this announcement would be completely unrelated

Manulife Securities is new name across Canada for combined Manulife, Berkshire-TWC businesses

Manulife Securities is the new trade name for a group of companies consisting of a mutual fund dealer, investment dealer and insurance agency operating across Canada, following Manulife's purchase of Berkshire-TWC Financial Group Inc.

"We are operating as a strong national firm that offers new opportunities for independent advisors serving their clients across Canada, committed to delivering the same high-quality service we provided in the past," explained Manulife Securities' President Rick Annaert.

"Manulife Securities is one of Canada's pre-eminent financial organizations serving more than 1,500 investment professionals, with the backing of Manulife's overall strength and expertise," he added. "We have a new look and are focused on leveraging the strengthened market and financial position of the combined companies."

Independent advisors continue to be the backbone of both Manulife and Berkshire, and that complementary culture has helped to complete a very smooth integration, Mr. Annaert explained. "Manulife and Berkshire both bring a great deal of value to the transaction, including the financial strength, resources and track record to execute the best possible integration. The whole is truly greater than the sum of its parts."

As a result of a legal amalgamation today, a new company has been created. At the same time, securities and insurance services also have been renamed, all headquartered at the former Berkshire premises in Burlington, Ontario...

[Shakespeare]

Ex-fund dealer's $6-million fine tossed out

Lawyers for the securities commission acknowledged that Mr. Thow's contraventions were dated before it changed the maximum administrative penalty, but said the penalty could be applied retroactively....

The court overturned the $6-million fine and substituted the maximum penalty allowed at the time of $250,000.

[active]

The decision is a waste of money and energy. Thow is not paying anyways.

[active]

Thow arrested in Oregon.

[DanH]

Ian Thow arrested in Oregon

[DavidR]

B.C. fraudster gets nine years