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by Mike Caswell
Yet another piece of litigation has arisen from former PI Financial Corp. owner Gary Ng's alleged $100-million loan scheme. PI has filed a lawsuit in the Supreme Court of British Columbia, looking to have an insurer reimburse it for $25-million in losses it claims to have suffered in connection with Mr. Ng's actions. The insurer, however, says that it owes nothing, as nobody defrauded PI.
The legal sparring comes about one year after Mr. Ng's brief tenure as PI's owner ended in controversy. He purchased the firm in November, 2018, at the age of 34, and installed himself as chairman. He then resigned as chairman in February, 2020, and new owners took over in July, 2020.
Initially, the reason for Mr. Ng's departure was unclear, but the Investment Industry Regulatory Organization of Canada soon offered an explanation. It published a statement of allegations against Mr. Ng on Nov. 24, 2020, in which it cited him for loan fraud. It said that he had borrowed money to satisfy the entirety of the $96-million purchase price for PI, securing the loan with assets supposedly held in brokerage accounts. The problem is that he altered account documents, making it appear that he held accounts with enough value to secure the loans, IIROC said.
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