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by Mike Caswell

Scotia Capital Inc. denies that it did anything wrong with its handling of the account of 90-year-old dementia patient Wallace Peterson. The firm claims that it was unaware Mr. Peterson could have a diminished mental capacity as he left $9.45-million (U.S.) unattended for years. Scotia Capital says that it simply followed his instructions.

The firm is responding to a lawsuit filed in the Supreme Court of British Columbia on Aug. 30, 2016, on behalf of Mr. Peterson, a retired businessman. The suit complained that Scotia Capital did not place Mr. Peterson's money into an appropriate investment, or into any investment at all. Since 2008, the firm had allowed $9.45-million (U.S.) of Mr. Peterson's money to sit in a non-interest-bearing account, the suit stated.

For its part, Scotia Capital denies that it knew anything was amiss. In a response filed on Oct. 14, 2016, the firm explains that it placed Mr. Peterson's account in a liquid state in 2008 because he wanted money available for a real estate transaction. After the money sat for about a year, Scotia Capital requested instructions from Mr. Peterson to move the money elsewhere, but he never provided such instructions.

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