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Crystal Wealth Funds Liquidation

  • Last Updated:
  • Mar 21st, 2018 10:29 pm
[OP]
Member
Aug 16, 2013
485 posts
111 upvotes
Toronto

Crystal Wealth Funds Liquidation

Someone I know has significant investments (RRSP and TFSA) in Crystal Wealth Funds. Ontario Securities Commission initiated an inquiry against the firm in April 2017 and the firm was put into receivership of Grant Thornton.

All financial advisors of the firm were terminated so the only way to get any info about funds is via the receiver.

He has been in urgent need of money since June and wanted to pull out money from his TFSA and RRSP to get his first house in the cooled off market.


As per the last update from the receiver, he doesn't see any money coming his way soon as the creditors have claims for more than the funds' amount. Meanwhile, I searched MFDA website and don't see the firm listed with MFDA. What are his options? Whom should he contact? He's stressed and needs some advice as this is all the savings he has.


Details of the case can be found at https://www.grantthornton.ca/services/r ... stalwealth


News: http://www.wealthprofessional.ca/news/i ... 25206.aspx
18 replies
Deal Addict
User avatar
May 11, 2014
3650 posts
3503 upvotes
Iqaluit, NU
Until full settlements and lawsuits are settled and cleared, your friend I believe is out of luck I'm afraid. Depending how much fraud and claims there are, there may be very little funds left.

Starting a class-action will result in little to no further benefit and cost more time and money than it is probably worth.

I don't know what legal courses of action to take other than to wait for further news from Grant Thornton.

Perhaps going to news outlets (eg. CBC Marketplace etc.) could bring more light to the issue and they may be willing to give free legal advice from there? They did a piece on one instance of fraud in the last few days
http://www.cbc.ca/news/canada/british-c ... -1.4328616

I feel bad for your friend.
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Newbie
Oct 18, 2017
3 posts
1 upvote
You still have to wait. The BDO claim is substantial. This BDO claim will delay things.
I went to GT web site to see receiverships they did in the past.. they resolve things within a range of two years..
I think GT may do interim cash distribution despite the BDO claim and I hope you will get some of your cash back..at least for buying the house..
[OP]
Member
Aug 16, 2013
485 posts
111 upvotes
Toronto
patho2017 wrote: You still have to wait. The BDO claim is substantial. This BDO claim will delay things.
I went to GT web site to see receiverships they did in the past.. they resolve things within a range of two years..
I think GT may do interim cash distribution despite the BDO claim and I hope you will get some of your cash back..at least for buying the house..
I just saw you joined RFD and made this first post. Are you related to the receiver or just another investor?
Newbie
Oct 18, 2017
3 posts
1 upvote
I am an investor at Crystal Wealth. I reached your post on this forum when I was searching for (Crystal Wealth) on Google to see if there is any new news. I had to sign up in order to be able to write and post for you.
[OP]
Member
Aug 16, 2013
485 posts
111 upvotes
Toronto
patho2017 wrote: I am an investor at Crystal Wealth. I reached your post on this forum when I was searching for (Crystal Wealth) on Google to see if there is any new news. I had to sign up in order to be able to write and post for you.
Thanks. Please keep this post updated as you get more information so that I can advise this relative of mine as well.
[OP]
Member
Aug 16, 2013
485 posts
111 upvotes
Toronto
Can you please provide more details about the BDO claim?
Newbie
Oct 18, 2017
3 posts
1 upvote
The BDO claim is posted on GT web site. If the BDO is resolved, the GT will do interim cash distribution.
Newbie
Jan 3, 2018
1 posts
Some honest, hard-working people lost everything due to these white-collar criminals.

I am hoping they will recoup some assets but they certainly won't get anything close to what they thought. Life savings - gone. Retirement - not possible ever.

Preying on the elderly and uninformed eh Al Housego? Sickening behaviour. I'd love to know how the regulators didn't catch them totally falsifying their NAVs.

Overall the situation is shocking. Here's hoping Housego et al get what they deserve. But they won't - white collar criminals never do, do they?
Newbie
Jan 8, 2018
1 posts
Al Housgo is the biggest culprit in this sad
event. Took many millions of dollars and invested it far from the mandate in which he sold the funds ie: junior gold mines are not low risk. Please, we have to be verbal and spread the word or he will be back in the business of gutting more investors
[OP]
Member
Aug 16, 2013
485 posts
111 upvotes
Toronto
Yes, I met him last week. He mentioned that he at least got his original investment back but no profit for locking his money in these funds for two years. However, CRA will now not let him withdraw funds without paying tax as you can only withdraw until 30 days after closing. His closing was in July last year. The poor guy took Line of Credit to close on his house.
Deal Addict
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May 11, 2014
3650 posts
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roofgoof wrote: Yes, I met him last week. He mentioned that he at least got his original investment back but no profit for locking his money in these funds for two years. However, CRA will now not let him withdraw funds without paying tax as you can only withdraw until 30 days after closing. His closing was in July last year. The poor guy took Line of Credit to close on his house.
Sorry to hear that, but I am glad to hear he at least got his original investment back. That is not assured in these cases.
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