Jones case begs for changes: alleged victims lobby

Another step in the case of disgraced unregistered financial advisor Earl Jones took place last week as his former luxury condominium officially went for sale in Dorval.

Members of an ad-hoc victims committee kept watch at the front door as media buzzed in and out of the Lakeshore Road building last Friday morning. Joey Davis and Kevin Curran, whose elderly mothers were allegedly swindled by Jones, are hoping the case sets new precedents and forces financial institutions and regulators as well as federal and provincial government make significant changes to better protect the public.

Curran, whose mother lives in Ste. Anne de Bellevue and lost her life savings, also hopes municipalities take the time to help out by possibly deferring some property-tax bills. Beaconsfield voted this fall to defer 2010 taxes for any residents involved in the case.

“I think it is important to hope municipalities participate, at some meaningful level, not to bail these people out, but provide them some amount of grace time so they can assess their finances and stay in the community which they helped build. That’s very important,” Curran said.

Curran also addressed whether or not alleged Jones victims should have realized something was awry if higher than normal returns were being promised. But since Jones dealt with a chartered bank, victims believed their investments were legitimate since cheques had the Royal Bank name on it.

“Everyone thought he was storefront for the Royal Bank. The bank allowed that to happen by not monitoring how that account was managed. That is one of the principal problems. Should have they known, maybe, could have they known, I don’t think so,” he added. “For the vast majority it was minimal returns,” Curran said.

During Jones’ bankruptcy hearings, it was revealed that the Pointe Claire-based financial advisor had an Earl Jones in Trust account at a Royal Bank of Canada branch in Beaconsfield. Curran said Jones also sought mortgages for women in their 80s and no one raised questions.

Curran said what’s critical is that changes in the system are made since Jones, now out on bail, will probably likely not spend more than a year in jail if convicted of fraud and theft charges.

“We hope that our efforts of the organizing committee not only bring light to the complicity of an investor, registered or not, and the gatekeepers and how they protect your money by following the money,” he said. “Instead of just focusing on Earl Jones, our efforts and other efforts should look at the entire system to the point to where the continuum of victim to criminal is understood and proper regulation is put in place to discourage this.”

The waterfront condo, one of four properties seized by bankruptcy trustees RSM Richter, is listed at $925,000 and is expected to sell quickly, one of the real estate agents said during a media-only tour last Friday morning. Jones was evicted from the Dorval condo where he lived with his wife, who has since filed for divorce, Sept. 11.

Meanwhile, Ann Davidson of the West Island Community Resource Centre (WICRC), which has been assisting alleged victims of the Jones scandal, said public donations to help them are an ongoing need. She said they have helped 37 people so far, with legal advice, hosting support group sessions to help pay urgent bills.

“The money from the assistance fund goes towards food, fuel and medical bills since some have no cash flow,” Davidson said.

These days, there are not many donations from private sources. “The pot is diluted,” she said.

Jones, who ran an alleged Ponzi scheme for about 25 years, is expected to be back in court to face theft and fraud charges on Jan. 15.