You are on the investor committee for Securecare? Didn't they lie about the loans being "insured"?
Correct. I am on the SecureCare investor committee and many of the collateral pools administered by TFS were not insured, or apparently improperly insured. Several (alleged) contractual breaches by the collateral administrator, TFS which was hired by SecureCare, and is co-owned by the main SecureCare operator, Peter Johannes. His $3M fee was supposed to be sub-ordinated to the bond recipients as per the OM but was not and as such is owing. A settlement is a distinct possibility ( currently being negotiated ) as is a multi-year lawsuit.
More here
https://www.grantthornton.ca/services/reorg/bankruptcy_and_insolvency/SecureCare
Missing in Canada is not only a better staffed commercial crime unit at the RCMP but also a financial press, blogs, TV shows or newspapers that investigate or write about these type of financial operators. Walton Group ( see here
http://documentcentre.eycan.com/Pages/Overview.aspx?SID=1400 ) now in receivership, or also OmniArc (
http://documentcentre.eycan.com/Pages/Main.aspx?SID=381 ) for example and of course many many more in the 2008/2009 timeframe during financial crisis.
The spectrum is long and grey, from unforeseen black swan events, to sheer bad luck, to excessive fees, to poor asset choices, to excessive leverage, to management turnover, to incompetence, to negligence, to gross negligence or to outright fraud, and often not easy to discern, even after a few years of document production and deep insight, let alone upfront when investing.
I thought when I invested some RRSP money into SecureCare in 2015 that factoring is a relatively mature industry where 10%+ returns are very doable. TFS contractually obligated itself to pay 14% to SecureCare and out of that it would pay its fees to EMDs like Pinnacle, Triview or Raintree and it’s own operating costs. So all very believable. But then, a mere 4 months after they raised the last $ all collateral pools under management are worth almost nothing ? Strange, eh ? A coincidence ? Fraud ? Poor investment acumen ? Negligence ? Gross negligence ? All TBD possibly in an understaffed & very expensive and time consuming court of law unless a satisfactory settlement can be achieved by early next year. TBD.