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Receivership and Bankuptcy
Page last updated: October 21, 2024
This page is for information purposes only and you should consult your professional adviser if you have any questions or are uncertain as to your rights or obligations.
Status of the file as of October 21, 2024
A number of investors have advised the Receiver that they recently received a letter from the CRA in regard to their T1 Adjustment Requests, advising them of a deadline by which the CRA will close their file.
The Receiver has contacted the CRA and has been advised that the CRA has discussed the matter internally, and the CRA will not be enforcing the deadline. CRA will send a follow-up letter to the investors contacted to confirm their request is still under review.
The Receiver continues to work on the Funds Flow Analysis and prepare a submission to CRA to propose an approach on the treatment of investment income previously reported on T5s and losses. As noted in our September 25, 2024 status update, while we hope to develop an approach that will assist investors, we note that CRA is bound by the tax legislation. Any approach we propose will be subject to their approval.
Status of the file as of September 25, 2024
We have received some inquiries seeking an update on our work. We continue to work on the Funds Flow Analysis, which includes drilling down to the investor detail level for each investor. This work supports our on-going discussions with CRA. We are working on a submission to CRA to propose an approach on the treatment of investment income previously reported on T5s and losses. The submission is a work in progress. While we hope to develop an approach that will assist investors, we note that CRA is bound by the tax legislation. Any approach we propose will be subject to their approval.
We continue to meet with the estate inspectors on a regular basis to keep them apprised of the various CRA workstreams, as well as any other matters that need to be dealt with on this estate. The inspectors have regularly provided feedback on our activities which has been useful.
Status of the file as of June 19, 2024
As expected, today the Court ‘adjourned generally’ Greg Martel’s discharge hearing.
The adjournment means that Greg Martel’s legal status remains that of an undischarged bankrupt, and the debts against him, remain against him.
Should Greg Martel wish to be discharged from his personal bankruptcy, he must make an application and appear before the Court, and he must give notice of that application to the Trustee and the Office of the Superintendent of Bankruptcy. A copy of the Order can be found under the Bankruptcy Documents – Gregory Martel tab above.
Status of the file as of May 26, 2024
Pursuant to typical personal bankruptcy proceedings, a bankrupt is often eligible for an automatic discharge from bankruptcy at the end of 9 months from the date of the commencement of the personal bankruptcy unless the Trustee, a creditor or the Superintendent of Bankruptcy oppose the bankrupt’s discharge. In Mr. Martel’s case, the 9-month period expires on May 31, 2024. Prior to the 9-month expiry, a Trustee must prepare a report pursuant to Section 170 (“S170 Report”) of the Bankruptcy and Insolvency Act (“BIA”) and file it with the Office of the Superintendent of Bankruptcy (the “OSB”), and with the Court if the Trustee opposes the bankrupt’s discharge.
PwC has prepared the S170 Report and intends to oppose the discharge of Mr. Martel from his bankruptcy proceedings. PwC has filed the S170 Report with the OSB and has posted a copy of it on this website under the tab entitled Bankruptcy Documents – Gregory Martel, for the benefit of all creditors/investors to review.
The S170 Report provides the Court with information to consider the application for Mr. Martel’s discharge. It lays out the Trustee’s view of the causes of the bankruptcy, the conduct of the bankrupt (including if the bankrupt has completed his/her required duties, and/or committed any offences under the BIA). It further reflects whether the Trustee intends to oppose his application for discharge and why.
All creditors/investors who have filed a proof of claim will receive an email from the Trustee this week advising them of further details on the discharge process and the scheduled hearing date.
Status of the file as at March 20, 2024
We advise that substantial progress on the Funds Flow Analysis (“FFA”) has been made, and we expect that upon its completion, we will be able to determine the cash invested by, and cash distributed to, each investor. With this information, PwC expects to be able to identify whether an investor, during the period they invested in MMAC, lost money. PwC has contacted CRA in hopes to gain assistance for investors.
Our objective is to work with CRA to:
- Gain clarity on the proper treatment of losses incurred by each investor; and
- Explore the ability to file amended T5 slips for investors.
The timeframe for completion of this work is uncertain, and we will provide updates when possible.
We recognize that some investors are subject to collection activity due to previously filed tax returns, and we have discussed this matter with CRA. The following options have been outlined by CRA for investors in this situation:
- File a Notice of Objection
- Request an Adjustment to your income tax return
Further information has been emailed to each investor and a copy of the general tax update has been posted to the Investor Communications tab of this website.
A reminder that PwC will not be issuing MMAC T5 slips until the FFA is completed, as it has insufficient information to do so. Investors who determine that they earned investment income from MMAC are reminded that they have an obligation to report this income to CRA regardless of whether a T5 slip is issued by MMAC.
Additionally, PwC has recently filed a consent order dismissing the application regarding the Rayani payment, as a settlement has been reached. A copy of the Consent Order has been posted to the Canadian Court Orders tab.
Status of File as of March 3, 2024
The Receiver/Trustee has posted a general estate update which was communicated via email to investors on March 1, 2024. A copy of the update can be found under the Investor/Creditor Communications tab. Additionally, we've had requests for copies of the inspector meeting minutes. We have posted these minutes (meetings # 1 - 14) under the Investor/Creditor Communications tab. The minutes have been redacted for sensitive information which in the Trustee's view must remain confidential at this time. Additional meetings' minutes (redacted) will be posted when available.
Status of File as of January 23, 2024
The US Court has issued an Order authorizing PwC, in its capacity as Trustee in the bankruptcy of Greg Martel, to sell the Las Vegas property previously owned by Greg Martel, which was subsequently transferred to Daniel Castellini by Greg Martel. The Order also approves the Settlement Agreement that the Trustee has entered into with Daniel Castellni. The hearing was held on January 16, 2024, and copies of the Declaration of Neil Bunker and the Order can be found under the respective US Court Materials and US Court Orders tabs. The sale is expected to close on January 31, 2024.
Status of File as of December 20, 2023
PwC has prepared a 3-page general status update document for investors, which can be found under the Investor/Creditor Communications tab above.
Status of File as of December 18, 2023
A short court hearing is scheduled for December 19, 2023. The Receiver is making an application to remove its charge registered on title against Greg Martel’s Victoria property, as the property was recently sold. This is a ‘housekeeping’ application and as such, there will be no Teams link available.
Status of File as of November 15, 2023
At yesterday’s court hearing, the Court granted 2 orders. The first Order was to amend the Contempt Warrant issued re: Gregory Martel to be a Canada wide warrant. The second Order was to adjourn generally (until a maximum date of January 30, 2024) the Rayani preference matter. This Order also speaks to requested document production, and the proposed examinations of both Gregory Martel and the Trustee. A copy of both Orders has been posted to the Canadian Court Orders tab.
Status of File as of November 14, 2023
The court hearing scheduled today, Tuesday November 14th, is expected to be quite short and will only be addressing the of application to have the Contempt of Court order to be amended to be a Canada wide warrant. The other two applications have been adjourned to different days, these applications were as follows:
- The application related to a possible preference payment, adjourned on terms after discussion with legal counsel ; and
- The application related to production of records from prior counsel to Mr. Martel, adjourned due to a scheduling conflict.
Due to these decisions, there will be no Teams connection for this court hearing.
Status of File as of November 13, 2023
Also scheduled to be heard at the November 14, 2023 hearing, will be the Receiver’s application to have the Contempt of Court order dated September 11, 2023 (resulting in the civil arrest warrant issued for Greg Martel), to be amended to be a Canada wide warrant. A copy of the Receiver’s notice of application is posted to the Canadian Court Materials tab.
Status of File as of November 10, 2023
A hearing is scheduled for Tuesday November 14, 2023, at 10:00 am Pacific time in the Vancouver Court. At the hearing, the Receiver’s application concerning the Rayani preference is slated to be heard. Counsel for Rayani is making an application to have the matter adjourned generally, until a future date, as well as an application for an order to examine the Trustee and Greg Martel.
The Receiver is also making an application to compel Greg Martel’s previous counsel to produce their trust accounting records.
All court materials received can be found under the Canadian Court Materials tab. A link to the hearing will be posted to this website the morning of November 14, 2023.
Status of File as of October 23, 2023
On October 20, 2023, the US Court granted the Chapter 15 Recognition Order, in advance of the hearing that was due to be held October 24, 2023. As the matter was unopposed, the US Court granted the order early, and therefore the hearing scheduled for October 24, 2023, has been cancelled. As such, we are removing the link from the status update dated October 2, 2023.
The newly pronounced Chapter 15 Recognition Order now solidifies permanently the US Court’s recognition of the Canadian court orders as specified.
A copy of the Chapter 15 Recognition Order can be found under the US Court Orders tab.
Status of File as of October 2, 2023
Following PwC's application in the US Bankruptcy Court for emergency relief in the recognition proceedings under Chapter 15 of the US Bankruptcy Code, a hearing has been scheduled to hear PwC's application for recognition of the Canadian Proceedings by the US Court. The hearing has been scheduled for 11:00 am Pacific time on October 24, 2023. Notice of the Hearing, its related exhibits and proof of service of the notice are posted in the US Court Materials tab on this website.
Any party wishing to submit a response or objection to the application must file materials by October 17, 2023 and replies to any response are due by October 23, 2023 by 5pm. Please refer to the Notice of the Hearing for further details.
The US Court has also issued its order directing the US Marshal's Service to detain Gregory Martel. A copy of the order is in the US Orders tab of this website.
Status of File as of September 26, 2023
Many investors continue to ask the Receiver about personal income tax matters and the Receiver recognizes that this is an important issue for investors. Regretfully, we are unable to give any tax advice to investors and suggest that investors speak with their own tax advisors.
We believe that Funds Flow Analysis (“FFA”) that the Receiver is working on may be helpful to both investors and CRA in order to determine the proper treatment of previously reported interest income and the appropriate treatment of any losses. The FFA is a work in progress, and we will let investors know the results of it when available. Therefore, at this time, we are not able to provide any guidance to investors regarding the tax treatment of their MMAC investments.
The Receiver will not be replying to any further email inquiries regarding income tax matters.
Status of File as of September 22, 2023
The United States Bankruptcy Court for the Central District of California (the "US Court") heard PwC's emergency application for provisional relief today as part of the process to obtain recognition of the Canadian Receivership and Bankruptcy proceedings. A hearing for the final recognition of the Canadian Proceedings has been scheduled for 11:00 am on October 17. The US Court made several orders that apply until the hearing on October 17. In general, the US Court:
- Ordered a stay of proceedings against MMAC, Greg Martel and the Related Corporations listed in the IPOs
- Restrained MMAC, Greg Martel and the Related Corporations from dissipating assets owned by them
- Restricted Dan Castellini from transferring any assets he received from Greg Martel
- Recognized the Canadian Order finding Greg Martel in contempt
- Ordered the US Marshall Service to recognize the bench warrant issued by the Canadian Court, and ordered that they apprehend Greg Martel and bring him in front of the US Court
Orders from the US Court will be posted in the Court Orders section of this website upon receipt from the US Court.
Status of File as of September 21, 2023
On September 20, 2023, PwC as Receiver and Trustee in the MMAC/Martel insolvency matters, filed a ‘Chapter 15 Petition for Recognition of a Foreign Proceeding’ to obtain a recognition of the Canadian proceedings from the US Bankruptcy Court. Further, PwC has requested provisional relief from the US Bankruptcy Court and an emergency hearing is set for Friday September 22, 2023 at 10:00 AM Pacific Time in the US Court to consider this request. A link to the hearing is provided below:
Videoconference URL: https://cacb.zoomgov.com/j/1603191482
Meeting ID: 160 319 1482 Password: 956411
For further details, please consult the instructions on the Court’s website: https://www.cacb.uscourts.gov/judges/honorable-scott-c-clarkson.
Court materials for the US applications, as they become available, will be posted under a new tab above “US Court Materials”. A further status update will be posted when available.
Status of File as of September 15, 2023
As mentioned in the previous status update, the BC Supreme Court (the “Court”) granted 7 court orders at the September 11, 2023 hearing, as sought by PwC in its capacities as Receiver and Trustee. A brief summary of the orders is below:
1) Contempt of Court – the Court has found Martel in contempt of court, and a warrant has been issued for his arrest, and to be brought before a Judge of the BC Supreme Court. The Receiver is currently working with policing authorities to have the warrant placed into various policing databases.
2) Consolidation of MMAC and Martel Bankruptcy Proceedings – the Court has approved the combining of the bankruptcy estates of MMAC and Martel, so that there is only one bankruptcy proceeding under MMAC, for all debts of MMAC and Martel. This order streamlines various statutory activities and importantly alleviates the need for investors to file their claims against Martel (who personally guaranteed their investment) if they have already filed their claim in MMAC.
3) Amended Recognition and Recovery Funding – this order grants the Receiver the authority to borrow up to $600,000 (increased from $400,000) pursuant to the terms of the Vegas Recovery Note.
4) Funding Agreement Approval – this order authorizes the Receiver to enter into a Funding Agreement for $600,000 with 1548199 Alberta Ltd. As such, the Receiver is now able to engage US counsel to pursue the net proceeds from the sale of the Las Vegas property owned by Martel, among other initiatives.
5) Amended Substituted Service – the original Substituted Service order granted the Receiver (and any other party the power) to serve Martel at one of two email addresses he had provided. This amended order adds a third email address for service.
6) Substituted Service – Bankruptcy Proceedings – this order allows the same powers as conferred to the Receiver (as in the above order) to the Trustee in the bankruptcy proceedings.
7) Third Amended Investigatory Powers – this order extended the powers as conferred on the Receiver from October 31, 2023, to February 28, 2024, so that the Receiver can continue its investigation into Martel’s Related Corporations.
A mailing to creditors was also completed today. For investors who have filed a claim already in the MMAC proceedings, no further action is required.
Status of File as of September 12, 2023
As a result of yesterday’s court hearing, 7 court orders were granted and are now posted under the Court Orders tab. Another status update summarizing yesterday’s court hearing and orders will be posted in due course. Additionally, a mailing to all creditors is also underway.
Status of File as of September 11, 2023
Below is a link to today's court hearing
Meeting link:
Call in (Audio only)
- Dial In telephone number: (778)725-6348
- Toll Free telephone number: (844)636-7837
- Phone Conference ID #: 312909004#
Status of File as of September 8, 2023
The Receiver's Sixth Report and the Trustee's First Report have been posted to their respective categories (Receiver's Reports and Bankruptcy Documents - MMAC). Additionally, all application materials have been posted to the Court Materials tab.
Status of File as of September 6, 2023
The Court Order declaring Gregory Martel bankrupt on August 31, 2023 has been posted to a new header above (Bankruptcy Documents - Gregory Martel). Additionally, today the Court granted another order approving the Trustee's request to transfer the Martel bankruptcy proceedings from the Victoria Court to the Vancouver Court. A copy of the transfer order has also been posted to the new header above.
As a reminder, on September 11 (and potentially Sept 12), counsel for Mr. Martel will be speaking on two matters, those being to have the Receiver’s Third, Fourth and Fifth Reports sealed, and an adjudication of Mr. Martel’s application for a constitutional exemption.
In the same hearing, the Receiver will bring its application to have Mr. Martel held in contempt. The Receiver will also seek an order to approve the funding as noted in the Receiver's Sixth Report, and to seek an extension of the ARIPO to February 28, 2024, thus extending the powers conferred thereunder to the Receiver.
And, the Trustee will bring an application to have the Court approve to 'consolidate' procedurally the personal bankruptcy proceedings of Gregory Martel with that of the MMAC bankruptcy proceedings. The consolidation is being done to streamline the two bankruptcy proceedings. More information will be released to stakeholders after the completion of the hearing.
The Trustee's First Report to Court, the Receiver's Sixth Report, court application materials and additional status updates will be posted in due course as we prepare for the hearing. We confirm that the hearing will be able to be attended virtually via a link that will be provided on this website, between 9:00 - 10:00 am on September 11.
Status of File as of August 31, 2023
Today a bankruptcy order was granted against Gregory Martel, by the BC Supreme Court in Victoria, BC. A copy of the bankruptcy order will be posted to this website, once obtained after filing with the Court Registry. There will be more information for stakeholders posted in the days to come concerning the personal bankruptcy of Mr. Martel.
Additionally, the Receiver is proceeding on its September 11th application to have Mr. Martel declared in contempt, and the materials concerning this application have been posted under the Court Materials tab.
Status of File as of August 24, 2023
The Receiver is pleased to announce that it has entered into a funding agreement with a single investor who has agreed to provide $600,000 in funding to the Receiver. This funding agreement is conditional upon the approval of the inspectors of the bankruptcy estate of MMAC and the approval of the Court. Today the inspectors approved the funding agreement and the Receiver will be seeking the court's approval of the funding agreement as soon as possible in early September. Having this funding in place will facilitate the recovery of the value in the Las Vegas Property owned by Mr. Martel. A key step in that process is obtaining a bankruptcy order against Mr. Martel during the hearing scheduled for August 31, 2023, in Victoria. Following that, counsel in the United States will be retained to obtain Recognition Orders from a court in the United States.
The funding agreement provides additional funding which will prove to be helpful as it will fund the ongoing court applications being made by Mr. Martel which have obstructed the Receiver's attempts to gain relevant information from Mr. Martel on the Bridge Loans amongst other matters. Further, it will help fund other recovery initiatives that the Receiver wishes to pursue. Details of the fundinging agreement will be contained in the next Receiver's report which will be prepared to support the Receiver's application for court approval.
The Receiver has spoken to many investors about this funding request and appreciates the few investors who chose to fund the initiative. Following court approval of the funding agreement, the Receiver intends to return these monies to the few investors who funded the Vegas Recovery Notes to date.
Status of File as of August 1, 2023
The next court hearing will be on September 11 and 12, 2023. During the hearing, counsel for Mr. Martel will be speaking on two matters, those being to have the Receiver’s Third, Fourth and Fifth Reports sealed, and an adjudication of Mr. Martel’s application for a constitutional exemption. In the same hearing, the Receiver will bring its application to have Mr. Martel held in contempt.
The minutes of the First Meeting of Creditors (in the MMAC bankruptcy proceedings) held on July 26, 2023, are now posted to the Bankruptcy Documents tab.
Status of File as of July 26, 2023 - End of Evening Update
Today the Court granted two further orders:
1. Further amended the Amended and Restated Investigatory Powers Order extending the time frame during which the Investigatory Powers order remains in place until October 31, 2023.
2. Granted the Recognition and Recovery Funding Order which provides the Receiver with authorization to borrow up to $400,000 to fund recovery efforts in the United States.
The two orders will be posted under the Court Order tab in due course.
At the same hearing the court declined to grant a revised application brought by Greg Martel's counsel to seal the redacted portions of the Receiver's Fifth Report to the Court. As such, an unredacted copy of the Receivers Fifth Report to the Court including appendices has been posted under the Receiver's Report tab.
The court did not hear the original application of Greg Martel's counsel which, amongst other things, sought to seal the Receiver’s Third, Fourth and Fifth reports, and the 1st Affidavit of Greg Martel. Counsel to Greg Martel has indicated they will seek dates for the original application to be heard. The Receiver will post a further update to the website as soon as more information becomes available.
Further, the first meeting of creditors in the bankruptcy proceedings was held on Wednesday July 26, 2023 at 11am. At the meeting the creditors affirmed the appointment of PricewaterhouseCoopers Inc. as Trustee of MMAC in bankruptcy.
The creditors also elected 5 inspectors as listed below:
- Robert Bertram
- David Milburn
- Cheryl Nex
- Wes Rosso
- Robert (Bob) Biagioni
Status of File as of July 26, 2023 - Morning Update
Below is a link to today's court hearing
Join on your computer or mobile app
Call in (audio only)
- Call in audio only:
- +1 778-725-6348
- Phone Conference ID: 562 487 017#
- Canada (Toll-free)
- (844) 636-7837
- Phone Conference ID: 562 487 017#
Status of File as at July 25, 2023
As part of the July 26th hearing (as discussed in the July 23 and 24 status updates), counsel for Greg Martel have brought a court application to seek a sealing order, that among other things:
- Seals the Receiver’s Third, Fourth and Fifth report, and the 1st Affidavit of Greg Martel;
- Prevents any information provided by Greg Martel or the Related Corporations to PwC from being published, broadcast or transmitted; and
- Provides direction concerning the adjudication of Greg Martel’s application for a constitutional exemption for Greg Martel concerning the filing and delivery of application materials.
The Receiver has posted its Fifth Report to the Court, now including the appendices, under the Receiver’s Report tab in preparation for the July 26th hearing. Due to the application seeking a sealing order, the Receiver’s Fifth Report still has redacted portions. This was done at the request of counsel to Greg Martel and not at the Receiver’s instance.
Further, 9 additional creditors since the July 21 status update have submitted their Inspector Election Interest form. As such, the Receiver has updated the Inspector Election Interest Candidates & Notes document found under the Bankruptcy Documents tab.
The Trustee's Preliminary to Creditors in the bankruptcy proceedings of MMAC, is available under the Bankruptcy Documents tab.
Status of File as at July 24, 2023
In preparation for the Court hearing on July 26 (see July 23 status update), two Notice of Applications have been posted to the Court Materials tab. Additionally, the Receiver has posted its Fifth Report to the Court under the Receiver's Reports tab. The posted copy of the Receiver's Fifth Report has redacted portions, and contains no appendices. This was done at the request of counsel to Greg Martel and not at the Receiver’s instance. Mr. Martel’s counsel has advised that he intends on bringing a court application on July 26 to ask the Judge to seal the redacted portions of the Fifth Report. If the Court approves the sealing order, portions of the report will remain confidential. If the Court does not approve the sealing order, another version of the report will be posted to the website with only the redactions that the court approves (if any).
Status of File as at July 23, 2023
A Court hearing has been scheduled for July 26, 2023 at 10:00 am. During this hearing, the Receiver will be seeking the following:
- an extension of the timeframe during which the Investigatory Powers order remains in place until October 31, 2023 and,
- authorization to borrow up to $400,000 to fund recovery efforts in the United States.
The Receiver expects to post its next report by end of the day Monday July 24, 2023 subject to legal review. Investors who wish to attend the court hearing virtually may do so. As in the past, the Receiver will post a link to the court hearing by 9:30 am on Wednesday July 26 once it has obtained the link from the Court registry.
Further, the first meeting of creditors in the bankruptcy proceedings is scheduled for 11:00 am on Wednesday July 26, 2023. This meeting will be held virtually using Google Meet and creditors wishing to attend received a link in an email previously sent to them. Creditors who have filed a proof of claim with the Trustee will receive a further email over the next two days with a unique identification number they must use during the creditor meeting if they wish to vote at the meeting. We expect to post a copy of the Trustee’s Preliminary Report to Creditors in the Bankruptcy documents tab of the website by the end of day July 24, 2023, subject to legal review.
During the creditor meeting, PwC will update the creditors on the status of the Receivership and the Bankruptcy proceedings. Topics to be discussed include:
- Status of the Receiver’s Investigation generally
- The status of an analysis of funds flowing through MMAC and the Related Corporations (the “Funds Flow Analysis”) and its objectives
- Asset recovery initiative – pursuing Greg Martel’s residential properties
- Funding requirements for the asset recovery initiatives
A Question & Answer period will be included in the meeting.
The Receiver has appreciated the cooperation of the Investors and former employees who have provided important information to the Receiver to assist in its work.
Investors now have an opportunity to become more involved in the asset recovery process.
- Investors can appoint up to 5 Inspectors in the Bankruptcy Proceedings. PwC will be meeting with the appointed Inspectors regularly to provide updates on the investigation and recovery process. The Inspectors will also provide approvals to approaches proposed by PwC and offer their input on those approaches. Inspectors are volunteers and are expected to act in the interest of all Investors. Nominations are being accepted and the creditors who have filed a claim will have an opportunity to vote on the appointment of the Inspectors at the creditors meeting on July 26, 2023.
- The asset recovery initiative requires funding from the Investors.The current focus on asset recovery is to take control and sell the residential properties owned by Greg Martel. The most valuable property is in Las Vegas (the “Vegas Property”) and a recovery in excess of $1.8 million is expected after satisfaction of a mortgage registered against the property. In order to take control and sell the Vegas Property, a court in the Unites States will need to recognize the Canadian Receivership/Bankruptcy proceedings and applications to the US Court will be required to facilitate the sale of the Vegas Property. The Receiver is seeking funding of $400,000 to fund the recovery initiative and the court hearings in the US generally.
The Receiver is requesting that Investors fund this initiative as it does not have the necessary funding currently. Investors who are willing to provide funding will receive a promissory note (the “Vegas Recovery Note”) which will be repaid from the net proceeds from the sale of the Vegas Property. Details of the Recovery Initiative and the Vegas Recovery Notes are contained in the Receiver’s Fifth Report posted on this website.
A summary of the initiative and a copy of the Vegas Recovery Note have been posted in a separate tab on the website. Investors who wish to discuss the funding are invited to contact either Neil Bunker at neil.p.bunker@pwc.com or Claire Wheldon at claire.l.wheldon@pwc.com.
While the Receiver is aware of the anticipated losses to Investors, it is working hard to pursue recoveries for Investors with the limited resources it has. A lawsuit has been commenced in Las Vegas against Greg Martel and MMAC which could put the Vegas Property in jeopardy. The Receiver wishes to move as quickly as it can to pursue the Vegas Property on behalf of the Investors but requires the necessary funding. Applications to the US Courts are necessary to facilitate this and funding for legal costs is critical. Absent the funding requested, the opportunity to pursue the Vegas Property will likely be lost. We request that Investors seriously consider the Receiver’s funding request.
Status of File as of July 21, 2023
In advance of the First Meeting of Creditors to be held in MMAC bankruptcy proceedings, some creditors desiring to become inspectors have submitted their Inspector Election Interest form. The document can be found under the Bankruptcy Documents tab, and will be updated as additional forms are received.
Status of File as of July 13, 2023
Today a detailed email was released to all creditors of MMAC, confirming that the First Meeting of Creditors (“FMOC”) for the bankruptcy proceedings will be held on July 26, 2023 at 11:00 am Pacific time. A copy of the email text can be found under the Bankruptcy Documents tab.
The email text also touches on what creditors can expect to occur at the FMOC, and the election of inspectors to provide guidance to the Trustee on various issues to be raised in the bankruptcy proceedings. Creditors interested in becoming an inspector are being asked to complete a short form and return it to the Trustee in advance of the FMOC. The Inspector Election Interest form can also be found under the Bankruptcy Documents tab.
Status of File as of June 28, 2023
Today the British Columbia Securities Commission (“BCSC”) released a News Release asking the public for information about Shop Your Own Mortgage/My Mortgage Auction Corp. The BCSC’s Criminal Investigations Branch is gathering information via a special on-line form dedicated to the investigation. A link to the News Release and on-line form is here: https://www.bcsc.bc.ca/about/media-room/news-releases/2023/56-bcsc-asks-public-for-information-about-shop-your-own-mortgage-my-mortgage-auction-corp.
Status of File as of June 13, 2023
A copy of the Court Orders from the June 9th hearing have been posted under the Court Orders tab. In addition to the Substitution Order granted, the Court also granted the Receiver leave to post the MS Team links to this website for all future Court hearings, and as such there should not be any delay at the start of future hearings.
Status of File as of June 9, 2023
Today the Court granted an Order allowing the Receiver to serve an application for contempt on Mr. Martel substitutionally as well as granting the Receiver liberty to serve any other applications and/or documents on Mr. Martel substitutionally. This means that Mr. Martel can be served via his email addresses. The Order will be posted under the Court Order tab in due course.
Earlier this week, on June 6, the Receiver assigned MMAC into bankruptcy. A creditor mailing will be released to all stakeholders (investors, employees and trade creditors) on Monday, June 12, via email or Canada Post. A new tab on the home page titled Bankruptcy Documents will house all bankruptcy related document and will also be posted in due course.
Status of File as of June 9, 2023
The link to today's court hearing is shown below. Please note that due to the late posting of the link, that the hearing is standing down until 10:30 am Pacific Time, in order to allow attendees to obtain access.
Join on your computer or mobile app
Call in (audio only)
- Vancouver, Canada +1 778-725-6348
- Phone Conference ID: 710 105 861#
- Canada (Toll-free) (844) 636-7837
- Phone Conference ID: 710 105 861#
Status of File as of June 8, 2023
The Receiver has been advised that there may be new Court procedures to be followed in releasing a court hearing link publicly, and the link may not be available until shortly after 10:00 am Pacific Time tomorrow. The Court is aware that many investors intend to attend the hearing via the link. The link will be posted as soon it becomes available and authorized to be posted publicly. We thank stakeholders for their patience on this issue.
Status of File as of June 8, 2023
The Receiver's Fourth Report has been posted under the Receiver's Reports tab, and the Receiver's Notice of Application has been posted under the Court Materials tab. Both documents will be referred to at tomorrow's Court hearing. The link to the court hearing will be posted in a status update tomorrow morning, between 9:00 and 10:00 am Pacific time.
Status of File as of June 7, 2023
We advise that a link to the court hearing to be held on Friday, June 9 at 10:00 am, will be posted in a status update on the morning of June 9, between 9:00 and and 10:00 am. The Receiver's Fourth Report to the Court will also be posted in advance of the hearing, as soon as it is available.
Status of File as of June 1, 2023
The last set of Court Orders directed Mr. Martel to furnish further information to the Receiver, and, the Receiver has been in contact with Mr. Martel. The Receiver will issue a Fourth Report to the Court in advance of the next court hearing to be held on June 9, 2023. A copy of the report will be posted to this website as soon as it is available.
Status of File as of May 24, 2023
The Receiver has posted a ‘Questions and Answers’ document to the Investor Communications tab which answers the most commonly asked questions about the receivership, and the questions raised by investors on the town hall call held on May 12, 2023. Additionally, the document has been updated with information from the recent court hearing held on May 17, 2023.
More information will be posted to this website as it becomes available.
Status of File as of May 18, 2023
At the court hearing held today, the Court issued an amended and restated Receivership Order, which in summary added the following specific items:
- Directing Greg Martel to furnish the specific records and information as laid out in the Receiver’s Third Report (section 4.4); and
- Empowering the Receiver to assign My Mortgage Auction Corp into bankruptcy, thus allowing the Receiver to avail upon greater investigatory powers under the Bankruptcy and Insolvency Act.
Additionally, the Court issued an amended and restated Investigatory Powers Order (“IPO”), specifically:
- Adding the following named legal entities to the IPO: 2289548 Alberta Ltd.; Snail Team One, Inc. (also listed as Shair Fleet, Inc.); Shair Your Car, Inc.; Snail Team Six Software Development, Corp.; G&G Discount Merchandise LLC; and Martel Capital, Inc. thus allowing the Receiver to investigate these entities; and
- Directing Greg Martel to furnish the specific information as requested in the Receiver’s Third Report (section 7.4.2)
Copies of the Amended and Restated Court Orders can be found under the Court Orders tab.
Status Update as at May 17, 2023
Below is the link to today’s court hearing to be held at 10:00 am Pacific Time at the Vancouver Law Courts:
- Meeting link:
- For telephone appearances or audio difficulties during video appearances:
- Dial In telephone number: (778)725-6348
- Toll Free telephone number: (844)636-7837
- Phone Conference ID #: 562487017#
- Dial In telephone number: (778)725-6348
Status of File as of May 16, 2023
In support of the May 17, 2023 application, the Receiver filed its Third Report to Court dated May 16, 2023. A copy of the Report and the Notice of Application can be found in the “Receiver’s Reports” and “Court Materials” tab, respectively. The court hearing will take place at 10:00 am Pacific time on May 17, 2023.
As done previously, call in details and a link to the court hearing will be posted to this website as soon as available, around 9:30 am Pacific time on May 17, 2023.
Status of File as of May 12, 2023
A virtual Town Hall meeting for Investors was held today. Over 500 investors joined the call. Neil Bunker from PwC went through a short slide deck (posted to Investor Communications tab above), answered a few questions that had been received in advance, and then took questions from the attendees as time allowed. The meeting lasted for approximately 80 minutes. A “Question and Answer” document is being prepared for Investors and will be posted when completed.
Further updates will be posted as they become available.
Status of File as of May 12, 2023
We provide the link to MS Teams meeting for the Investors Town Hall meeting to be held on Friday, May 12, 2023 at 11:00 am Pacific Time:
Join by phone (CA) +1 647-476-2802 Access code: 433434077
Status of File as of May 11, 2023
A Town Hall meeting is being called for Investors in MMAC. It will be held tomorrow, Friday May 12, 2023 at 11:00 am Pacific Time. It will not be longer than 60 minutes in length. The agenda for the meeting will cover:
- Role of the Receiver
- Financial Summary to date
- Q&A
The meeting will be held via MS Teams, and a link to the meeting will be posted in another status update by tomorrow morning at 9:00 am Pacific Time.
The meeting will not be recorded however a list of questions and answers will be posted to the website in due course after the meeting.
Status of file as of May 9, 2023
In support of the May 9, 2023 application, the Receiver filed its First Report and Second Report to Court dated May 9, 2023. A copy of the Reports and the Notice of Application can be found in the “Receiver’s Reports” and “Court Materials” tab, respectively.
At this hearing, the Court granted an Order (the “Investigatory Powers Order”) which, among other things:
- Added Martel Investments Ltd. and Shop your Own Corp as defendants within the action;
- Compels certain individuals to provide access and cooperation to the Receiver; and
- Places a preservation order on the assets of Martel Investments Ltd., Shop your Own Corp, and Mr. Gregory Martel.
Status of file as of May 9, 2023
Details for the Appearance at 9th May 2023, 10:00 am at Vancouver Law Courts, 055 are listed below.
- Meeting link: https://teams.microsoft.com/l/meetup-join/19%3ameeting_NmRhNjcwMGEtZTZkYy00Njg4LWEyODEtOTcyNTRlNmQzMWE0%40thread.v2/0?context=%7b%22Tid%22%3a%2288c2f485-81c9-4402-a143-70d7ce08aec5%22%2c%22Oid%22%3a%224761383e-f7f3-4177-bfaa-fdb01cf0093c%22%7d
- For telephone appearances or audio difficulties during video appearances:
- Dial In telephone number: (778)725-6348
- Toll Free telephone number: (844)636-7837
- Phone Conference ID #: 562487017#
- Dial In telephone number: (778)725-6348
Status of file as of May 8, 2023
As noted in the Receivership Order made May 4, 2023, a court hearing will take place at 10:00 am on Tuesday May 9, 2023 to reconsider the Receivership Order. This hearing will be in person at the Vancouver Law Courts at 800 Smithe Street. The court has, however, arranged for guests to attend virtually by Microsoft Teams. The Teams link to attend virtually will be released by the Court in the morning on Tuesday May 9. The Receiver will post this link as soon as it is received.
Status of file as of May 4, 2023
On May 4, 2023, the Supreme Court of British Columbia (the "Court") granted an Order (the “Receivership Order”) appointing PwC as Receiver of the assets, undertakings and property of My Mortgage Auction Corp dba Shop Your Own Business. A copy of the Receivership Order can be found under the "Court Orders" tab above.
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