The ship has finally sunk
Email
Print
Letter to Editor
Share
Area Finance Ltd.’s ship has finally sunk, sadly - along with it the cash investments of approximately 465 local creditors.
If one has to start from the beginning and read through the court documents with regards to Area Finance’s predecessor numbered company 439288 B.C. Ltd., it has all the action, mystery and intrigue of a Hollywood script.
Accusations of drug busts, money laundering allegations, money traveling the country in hockey bags, loans made to company directors, ‘smurfing’, and even search warrants executed on a couple of local banking institutions.
Smurfing, for those, that have never heard of the term before is the issue of transactions structured to avoid certain record keeping and reporting requirements mandated by law. For instance making many smaller bank deposits into an account rather than giant deposits.
The latest update regarding Area Finance must have investors reeling once again.
While the company has been ‘forced’ into declaring bankruptcy the investors must be left wondering how this will effect them.
The company will legally be declared insolvent and generally all assets are liquidated and the proceeds are distributed to creditors.
At this point it is unclear if this is the process that will be followed and what assets that Area Finance does indeed hold.
I think it would be safe to say that investors have kissed away most of their invested funds due to the latest announcement.
The 2004 repayment guarantee made by both Carl Glenn Anderson and Doug Montaldi, directors of Area Finance did not hold much water in 2009. While some funds were repaid investors calls to Lakes District News indicated they were scarce and below the amount that they should have been.
In 2010 the promise will hold no water at all.
The failed businesses have definitely set the community back.
With approximately 20 per cent of the community and almost $40 million invested in the businesses it will be many years yet before the investors, and the community as a whole recovers from the failed venture, if at all.
Families can not afford to lose any amount they invested and some retired community members handed over much of their lives savings leaving them with nothing but a bad memory.
Although the 2002 investigation into the company directors, Anderson and Montaldi did not result in any jail time, extensive fines and bans were place upon the pair.
The latest announcement surely has investors wondering where to go next and how to seek appropriate justice for an unfair situation.
v2
