David Baines
In late 2005, Donna Mulder, a part-time grocery store cashier from
Second of a series
In late 2005, Donna Mulder, a part-time grocery store cashier from
Burnaby, joined DSC Lifestyle Services, an Ontario company that claims to "build wealth without sacrifice."
She paid $5,450 in various fees to become a member, which entitled her to attend financial workshops, participate in certain investments and to earn commissions by recruiting other members.
At the workshops, she met Jeffrey Eshun of Toronto, founder and president of DSC, and his close associate, Maisie Smith of Langley, who worked as a regional director for DSC in B.C.
Neither Eshun nor Smith are licensed to sell securities in Ontario or B.C., but they are certified as "registered financial consultants," which allows them to put the initials "RFC" behind their names.
As noted in Saturday's column, the RFC certification is awarded by the International Association of Registered Financial Planners in the United States. Eshun and his partners at DSC, Roger T. Blair and Bernadette Bowman, run the Canadian chapter.
It is unusual -- unique in my experience -- to have one group control an organization like this. In my view, it raises questions about its credibility.
Smith is also certified as a "Certified Business Mentor," which entitles her to use the initials "CBM" behind her name.
The designation is awarded by Robin J. Elliott, who runs a Coquitlam firm called DollarMakers. Elliott told me the CBM program takes five days and attendees do not have to take an exam. He says he charges $20,000 per person, a huge amount for a program like this. When I asked what academic or professional credentials he has, he refused to answer, but insisted he is a financial expert.
The only person in this mix who does not profess to be a financial expert is Mulder. She has no financial training and negligible investment experience. After paying more than $5,000 to join DSC, she was prepared to listen to whatever Eshun and Smith and other DSC reps told her.
Their advice proved disastrous. She obtained a line of credit against her home, which "freed up" $325,000 in cash. She could borrow that money at any time and pay interest only.
In May that year, she made her first investment. On Smith's recommendation, Mulder loaned $40,000 to a B.C. numbered company, 755720 B.C. Ltd.
According to the B.C. registrar of companies, the numbered company had been incorporated just one month earlier. Its sole directors are listed as Eshun and Smith.
"Jeff told me he was busy back east, so he set up the numbered company so Maisie could run it," Mulder recalled.
(The numbered company later changed its name to J.V. Raleigh Superior Holdings Inc. Raleigh is the town in Newfoundland where Smith was born.)
According to loan documents, Mulder's money would be used to purchase "high-yield consumer-secured notes" through an unnamed third party. The notes would earn 12 per cent annually, and all her capital would be repaid within 18 months.
I have never heard of "consumer secured notes," and neither has Google. The loan documentation didn't say how the notes were to be secured, or how the loan would be repaid. These are questions that Mulder, who had no investment experience, didn't think to ask.
But even before she was paid out on that investment, Mulder loaned the numbered company another $140,000, once again to buy "high-yield consumer-secured notes."
Smith signed the loan agreement on behalf of the numbered company. Her close associate, Glenda Hynes -- who also worked as a regional director for DSC and "compliance officer" for J.V. Raleigh -- witnessed her signature. (Smith and Hynes would pop up in other equally sketchy investments).
Mulder received monthly payments for the 24-month term of the note, but when the principal came due in January 2009, she got some bad news.
"Maisie said that, because of the financial crash, they didn't have the money at the moment," Mulder recalled. "She asked whether it would be okay to pay interest for now. I got a few more payments, then they stopped."
On July 12 this year, Mulder sent Smith an e-mail threatening legal action. Smith asked her to be patient.
"We are very close to finalizing the transaction here to start the payouts," she replied in an e-mail. "No one is running with the funds and the firm is working to complete the process to make this unpleasant situation much better for all that is involved."
I called Smith on Monday to try to determine where the money was invested, how it was secured, and what the holdup is, but she refused to answer. She said she would consult her lawyer and get back to me later in the day, but didn't. I also left several messages for Eshun, but he didn't respond either.
While Mulder waits for her money, Smith and her pal Hynes have moved on to other investments. They have created a business called Utopia Concierge Club, which is selling two-day seminars in financial literacy and, not incidentally, residential building lots in Costa Rica.
"Maisie has a vision and a cause to help people and is quite passionate about it," she says on the club's web-site. "With her experience at economic facilitation and wealth building she can help people reach their full potential and help them to retire with dignity and respect."
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NEXT: Before moving to sunnier deals, Smith introduces Mulder to a complex investment scheme that purportedly allows her to utilize her RRSP to borrow money and invest in a 10-year bond. Roger Blair, chief executive officer of DSC, pitches her on a charitable donation tax-shelter investment that supposedly allows investors to donate $5,000 and get a $35,000 tax receipt. Both are disallowed by Canada Revenue Agency.
dbaines@vancouversun.com
In late 2005, Donna Mulder, a part-time grocery store cashier from
Burnaby, joined DSC Lifestyle Services, an Ontario company that claims to "build wealth without sacrifice."
She paid $5,450 in various fees to become a member, which entitled her to attend financial workshops, participate in certain investments and to earn commissions by recruiting other members.
At the workshops, she met Jeffrey Eshun of Toronto, founder and president of DSC, and his close associate, Maisie Smith of Langley, who worked as a regional director for DSC in B.C.
Neither Eshun nor Smith are licensed to sell securities in Ontario or B.C., but they are certified as "registered financial consultants," which allows them to put the initials "RFC" behind their names.
As noted in Saturday's column, the RFC certification is awarded by the International Association of Registered Financial Planners in the United States. Eshun and his partners at DSC, Roger T. Blair and Bernadette Bowman, run the Canadian chapter.
It is unusual -- unique in my experience -- to have one group control an organization like this. In my view, it raises questions about its credibility.
Smith is also certified as a "Certified Business Mentor," which entitles her to use the initials "CBM" behind her name.
The designation is awarded by Robin J. Elliott, who runs a Coquitlam firm called DollarMakers. Elliott told me the CBM program takes five days and attendees do not have to take an exam. He says he charges $20,000 per person, a huge amount for a program like this. When I asked what academic or professional credentials he has, he refused to answer, but insisted he is a financial expert.
The only person in this mix who does not profess to be a financial expert is Mulder. She has no financial training and negligible investment experience. After paying more than $5,000 to join DSC, she was prepared to listen to whatever Eshun and Smith and other DSC reps told her.
Their advice proved disastrous. She obtained a line of credit against her home, which "freed up" $325,000 in cash. She could borrow that money at any time and pay interest only.
In May that year, she made her first investment. On Smith's recommendation, Mulder loaned $40,000 to a B.C. numbered company, 755720 B.C. Ltd.
According to the B.C. registrar of companies, the numbered company had been incorporated just one month earlier. Its sole directors are listed as Eshun and Smith.
"Jeff told me he was busy back east, so he set up the numbered company so Maisie could run it," Mulder recalled.
(The numbered company later changed its name to J.V. Raleigh Superior Holdings Inc. Raleigh is the town in Newfoundland where Smith was born.)
According to loan documents, Mulder's money would be used to purchase "high-yield consumer-secured notes" through an unnamed third party. The notes would earn 12 per cent annually, and all her capital would be repaid within 18 months.
I have never heard of "consumer secured notes," and neither has Google. The loan documentation didn't say how the notes were to be secured, or how the loan would be repaid. These are questions that Mulder, who had no investment experience, didn't think to ask.
But even before she was paid out on that investment, Mulder loaned the numbered company another $140,000, once again to buy "high-yield consumer-secured notes."
Smith signed the loan agreement on behalf of the numbered company. Her close associate, Glenda Hynes -- who also worked as a regional director for DSC and "compliance officer" for J.V. Raleigh -- witnessed her signature. (Smith and Hynes would pop up in other equally sketchy investments).
Mulder received monthly payments for the 24-month term of the note, but when the principal came due in January 2009, she got some bad news.
"Maisie said that, because of the financial crash, they didn't have the money at the moment," Mulder recalled. "She asked whether it would be okay to pay interest for now. I got a few more payments, then they stopped."
On July 12 this year, Mulder sent Smith an e-mail threatening legal action. Smith asked her to be patient.
"We are very close to finalizing the transaction here to start the payouts," she replied in an e-mail. "No one is running with the funds and the firm is working to complete the process to make this unpleasant situation much better for all that is involved."
I called Smith on Monday to try to determine where the money was invested, how it was secured, and what the holdup is, but she refused to answer. She said she would consult her lawyer and get back to me later in the day, but didn't. I also left several messages for Eshun, but he didn't respond either.
While Mulder waits for her money, Smith and her pal Hynes have moved on to other investments. They have created a business called Utopia Concierge Club, which is selling two-day seminars in financial literacy and, not incidentally, residential building lots in Costa Rica.
"Maisie has a vision and a cause to help people and is quite passionate about it," she says on the club's web-site. "With her experience at economic facilitation and wealth building she can help people reach their full potential and help them to retire with dignity and respect."
---
NEXT: Before moving to sunnier deals, Smith introduces Mulder to a complex investment scheme that purportedly allows her to utilize her RRSP to borrow money and invest in a 10-year bond. Roger Blair, chief executive officer of DSC, pitches her on a charitable donation tax-shelter investment that supposedly allows investors to donate $5,000 and get a $35,000 tax receipt. Both are disallowed by Canada Revenue Agency.
dbaines@vancouversun.com
© (c) CanWest MediaWorks Publications Inc.
Are these people now in jail or are they now operating under a different company name?
ReplyDeleteOh Robin J. Elliott and his wife Rika Elliott are alive and well and delivering their schemes and dreams under a new business name after Dollarmakers.com got bad publicity for being involved with Steve Friedland's ponzi scheme, where they stole millions of dollars from families and pensioners. I believe their latest name is Leverage Advantage.
ReplyDelete