From the desk of Alan Blanes, member of the Council of Canadians and Canadian contact for the Public Banking Institute.
The following is a series of emails from Alan to various Ministries regarding the subject of his father Harold Blanes and his fight with Insurers Group (IG) over hundreds of thousands of dollars siphoned from what was supposed to be a simple GIC into high risk securities where it was lost.
All without the consent of Harold Blanes.
Investors Group and the various regulators overseeing this issue such as the IIROC and the Insurance Council have simply refused to recognize any wrongdoing regarding this issue.
Now the Federal Finance Ministry has also denied any crime took place, this despite the fact that clearly Fraud was committed. Now Obstruction of Justice is taking place with the BC government once again involved in crimes against the people.
See an email from the Finance Ministry which outlines their position that no crime has taken place.
The reality is that criminals run the system and are continuing to lie, steal and destroy, this will not continue much longer however their time is coming very soon. The truth is people like Harold Blanes served this nation in WWII only to see it destroyed from the inside at the hands of tyrants who will stop at nothing until we stand up to them and restore justice for all Canadians.
From: Alan Blanes <firstname.lastname@example.org>
Date: Sat, Mar 18, 2017 at 4:04 AM
Subject: Re: Ref 356814 - Alan Blanes
To: "FIN OFFICE FIN:EX" <FINOffice@gov.bc.ca>, email@example.com, Brian Thiesen <firstname.lastname@example.org>, email@example.com
Cc: "Thomson.MLA, Steve LASS:EX" <Steve.Thomson.MLA@leg.bc.ca>, "James.MLA, Carole A LASS:EX" <Carole.James.MLA@leg.bc.ca>, "Eby.MLA, David LASS:EX" <David.Eby.MLA@leg.bc.ca>
Either this document exists or it doesn't exist. Either specific offers in sales of securities matter or they don't matter. Its time to clarify values of the governance of securities sales in British Columbia.
"The Insurance Council however advises that they thoroughly examined the concerns raised about the conduct of the Investors Group advisor (a licensee of the Insurance Council) who affected the investment on behalf of your father. It reviewed material your father provided in 2012 and again in 2015 and advised your father that “there was no evidence to indicate that the Licensee failed to meet her responsibilities as an insurance agent in her dealing with you. Council is satisfied the Licensee acted in accordance with your instructions and interests at the time, and had provided you with sufficient information to allow you to make an informed decision before completing the insurance transaction, which are the basis of your complaint.”
The problem my dad experienced was complete lack of recognition of basic duties to the common law of contract and the Criminal Code of Canada rules against any hint of deceptive dealing, that has been exhibited at all levels of the "regulatory [sic] structure". The very idea that the people of BC would have to tolerate an Insurance Council that would use the excuse that the contract may have been brought in from outside of BC - even though all the acts of engaging in a contract occurred in Kelowna, is a matter that the Premier's Office will have to comment on. As citizens of this province, there are some of us who are old enough to remember business law and other classes that showed where the origins of wealth in the western world came from. It was the extreme value of British contracts. These contracts were investment-worthy, because they had to be constructed in good faith, with no hidden provisions and provided roughly equal benefit or they could be rescinded due to any of these conditions being not met. When a province sets up a derailment of the rules that there shall be no deception of any kind in the sales of securities, one has to look at the results, when this principle is derailed. Investor confidence is trashed - and the future of the economy is affected negatively.
"I very much appreciate that you disagree with the assessment of the above-noted regulatory agencies. Individuals who believe they have been sold the wrong product are fully entitled to take legal action to enforce their legal rights (whether or not regulatory agencies or criminal prosecutors have decided to take action). I understand your father has commenced legal action in this regard."
356814Alan BlanesDear Mr. Blanes:Thank you for your email of January 27, 2017, addressed to the Honourable Michael de Jong, Q.C., Minister of Finance, and others, regarding concerns you and your father, Harold Blanes, have about investments made on behalf of your father by Investors Group. I have been asked to review your concerns because the Financial and Corporate Sector Policy Branch is responsible for providing advice to the Minister of Finance on concerns raised with the legal frameworks for the regulation of financial institutions and capital markets.In your letter, you have alleged that there has been a lack of effective investigation of the concerns raised by your father about the investments made on his behalf. In particular, you have indicated that “when the matter was reported to the police, they have a policy of brushing off the matter to the Insurance Council of BC – who say that they are only here to license insurance sellers but ‘are not responsible to look at anything that originates outside of BC.’”The Insurance Council however advises that they thoroughly examined the concerns raised about the conduct of the Investors Group advisor (a licensee of the Insurance Council) who affected the investment on behalf of your father. It reviewed material your father provided in 2012 and again in 2015 and advised your father that “there was no evidence to indicate that the Licensee failed to meet her responsibilities as an insurance agent in her dealing with you. Council is satisfied the Licensee acted in accordance with your instructions and interests at the time, and had provided you with sufficient information to allow you to make an informed decision before completing the insurance transaction, which are the basis of your complaint.”As Investors Group is also an investment firm selling securities products as well as insurance products, we understand that your father’s complaints were raised with securities market regulators, including the Mutual Fund Dealers Association (MFDA), the Investment Industry Regulatory Organization of Canada (IIROC) and the British Columbia Securities Commission (BCSC). Each of these organizations reviewed the complaint, and determined that no regulatory action was justified in respect of your father’s investments.Further, I understand you contacted the BC Financial Institutions Commission (FICOM), alleging Investors Group committed fraud in relation to your father’s investments. FICOM staff reviewed the matter and concluded that staff had not found any evidence to support your claim that Investors Group is conducting fraudulent activities. Staff noted that the origin of your father’s complaint is with the insurance agent licensee who you feel improperly sold your father the wrong product and that the Insurance Council had already provided you with a fulsome response to your complaint after investigating the matter.Although you remain concerned that investments were made on behalf of your father in products he did not ask for and the current system has failed to properly respond to your concerns, I believe the matter has been thoroughly reviewed by the appropriate provincial regulatory agencies responsible for the regulation of financial institutions and capital markets. They have concluded that there is no evidence of wrongdoing by either the individual licensee or the company.Your letter goes on to recommend that the first person in government – either elected or a line worker – who sees evidence of violations of the false pretense and fraud provisions in the Criminal Code should be obligated to get the problem under control. British Columbia has in place marketplace laws and regulatory bodies – many of which are discussed above – that undertake the role of ensuring that investors such as your father are not treated unfairly or fraudulently.Criminal prosecutions are handled by the Criminal Justice Branch of government, often after receiving information from regulators. However, criminal prosecutions generally require a much higher burden of proof than regulatory actions. The fact that the responsible regulatory agencies have concluded that there are no grounds for regulatory action against an individual or company would strongly suggest that any criminal prosecutions are unwarranted.I very much appreciate that you disagree with the assessment of the above-noted regulatory agencies. Individuals who believe they have been sold the wrong product are fully entitled to take legal action to enforce their legal rights (whether or not regulatory agencies or criminal prosecutors have decided to take action). I understand your father has commenced legal action in this regard.I would like to thank you again for taking the time to write.Sincerely,
Assistant Deputy Minister
Policy and Legislation Division
Ministry of FinanceFrom: Alan Blanes [mailto:canadachapterpbi@gmail .com]
Sent: January 27, 2017 2:50 PM
To: Pellatt, Nan ; Thomson.MLA, Steve ; deJong.MLA, Mike ; James.MLA, Carole ; Eby.MLA, David
Subject: Re: You made a difference in 2016Dear BC Legislators Who Protect the Public from Financial Abuses from Bad Faith Dealing by Brokerages:My 96 year old father has had an extreme assault on his retirement years, by having to put up with lying practices of Investors Group - and then when the matter is reported to the police, they have a policy of brushing off the matter to the Insurance Council of BC - who say that they are only here to license insurance sellers but "are not responsible to look at anything that originates outside of BC."Certainly the people of British Columbia are entitled to policing that goes beyond this deliberate impunity charade. We can no longer accept a policy that tries to pass the buck on this kind of problem at every turn. Could we get agreement from the members of the Legislative Assembly that, when evidence of violation of the Criminal Code Sections 361-363 and 380 and violations of the Common Law of Contract exists, - that is designed to damage the financial interests of elderly seniors - that we stop the game of trying to parse jurisdictions - and be willing to take a hard look at the facts - and then send a report off to the office that is most relevant to look at racketeering abuses? It would be far more helpful if the person who ultimately has to challenge such business practices, has a record of commentary from others who have had the problem brought to their attention - when the facts are looked at, and the outrage of the practices - registers with the legislator who first sees the record. That is what is needed in order to document that the incidents are an affront to community standards. The practice of trying to avoid this phase of maintaining justice, only serves to keep community standards from being articulated.Could the Liberal Party and the NDP work on a policy that says that the first person who is a government worker - either elected or a line worker - who sees violations of the law - make an ASSESSMENT of the record - and then take steps to ensure that the other organizations at any level of government and in any relevant department - who are in any way able to get the problem under control - be asked to join a team to solve the problem?It would be great if we could get this kind of issue brought under control - and the rule of law reinforced. Thank you for your views on the questions raised in this case.Best regardsAlan Blanes, for:Harold C. Blanes - WWII veteran and abused seniorHi Wanda and all members of the CARP Advocacy Team -cc Isobel MacKenzie, Seniors Advocate of BC, Anna at the office of David EbyI see three priorities listed for 2017 on reducing surgical wait times, eliminating mandatory RIFF withdrawals, and enabling aging in place. I would like to make the case for why all of these subjects - that in effect, are within the realm of increased economic capacity - would be best served if we work seriously on developing a much greater democratic control over investment practices.Deceptive dealing - as illustrated in the experience of Harold Blanes - in the nine exhibits that are contained in the binder of evidence that is being reviewed by CARP, shows a pattern of deception - and predatory dehumanization. Harold Blanes can demonstrate beyond a shadow of doubt, that he contracted for GICs with Investors Group, and this company spent years denying that he was seeking GICs and instead wanted seg fund mutual funds. This, after the consultant is documented in internal correspondence, that he was indeed seeking guaranteed savings. The performance of this company - in making the facts expendable - and to promote the idea that there is no importance attached to putting a 96 year old senior through years of disregarding what he had contracted for - this is an egregious act of elder abuse.The reports from the Insurance Council of BC - which is the organization that the police refer complaints to in matters dealing with seg funds, has stated - in 2016 - that they are only responsible for licensing insurance sales people and have no responsibility to look at products that originate outside of British Columbia and if a complainant is not satisfied with this derelict policy, then they may go to the FICOM - the Financial Institutions Commission. The position of this organization is that their duty to to only ensure that the insurance industry has solvency in the event of claims. They take no responsibility to ensure that there is good faith in the way the industry is operating - in such matters as hijacking the capital value of elderly seniors' savings under false pretenses.The performance if British Columbia in the matter of providing impunity to deceptive practices, for the purpose of fleecing the elderly, is a disgraceful and destructive public policy. It is an example of exactly what Goal 16 of the 17 Sustainable Development Goals for 2030 is meant to combat. It is an example of dysfunctional institutional culture that needs to be overhauled. Presciently, also in Goal 16 is a sub-goal of enabling access to equal justice for all. See this link to get a survey of what is contained in this marvelous 17 SDGs project: www.bccic.ca/gecco/.I look forward to a great deal of headway in resolving this horrifically negligent official victimization of the oldest of our elderly - who do not deserve such toxic and ruinous policies - not just by trapping the client in an unending torment - but we have to come to grips with the fact that this systematic abuse also does irreparable damage to confidence in our economic institutions - which constricts our ability to have economic means to accomplish future endeavors. We do not have to continue to choose this march off a cliff.Best wishes for 2017!Alan Blanes, for:Harold C. Blanes - Second World War Veteran