Credit union denies negligence in alleged fraudulent investment lawsuit

CBC News

· Posted: Mar 07, 2025 4:52 PM EST | Last Updated: 6 minutes ago

A Manitoba recognition national says it is not liable for a Winnipeg man's nonaccomplishment of astir $650,000 successful a fraud scheme.

Peter Squire is suing Access Credit Union and the Royal Bank of Canada aft helium mislaid wealth from his status savings to a fraudster successful 2022.

Squire filed a suit successful September, seeking to retrieve wealth helium mislaid aft helium received an unsolicited telephone telephone from a idiosyncratic identifying himself arsenic a Bank of Montreal elder portfolio manager, referred to successful the suit arsenic John Doe. 

The suit says John Doe convinced Squire to marque 2 physics transfers of funds from his Access Credit Union relationship successful November 2022 — 1 for $175,000 and different a fewer days aboriginal for $473,290.08.

The funds went into a Toronto RBC account controlled by fraudsters, the suit alleges, and the wealth was not recovered. 

The suit claims Access Credit Union negligently facilitated the fraud by failing to inquire due questions oregon marque due inquiries. 

The recognition national filed its connection of defence astatine Court of King's Bench successful Winnipeg connected Jan. 15, denying it was negligent and denying that Squire's nonaccomplishment was the effect of thing done oregon not done by the recognition union.

Any nonaccomplishment alleged by Squire was owed to his ain negligence, the tribunal papers says, including "pursuing a purported concern accidental based disconnected of an unsolicited telephone telephone from an chartless individual." 

The recognition national alleges Squire failed "to beryllium wary of unsolicited communications from chartless individuals" and failed to instrumentality tenable steps "to corroborate the individuality of the purported concern advisor astatine BMO." 

Squire had alleged successful his suit that recognition national unit failed to inquire due questions astir the ligament transfers astatine the time.

In its defence statement, the recognition national says it "inquired arsenic to the quality and legitimacy of the archetypal ligament transfer" and successful response, Squire "assured ACU that the projected transportation was legitimate". 

The tribunal papers says the recognition national offered Squire "a slope draught arsenic a lower-risk alternate to the archetypal ligament transfer," but Squire declined that proposition and "insisted" connected proceeding with the ligament transfer.

The recognition national alleges that erstwhile Squire went to ACU to bash the 2nd ligament transportation successful the magnitude of $473,290.08, Squire "again assured ACU that the projected transportation was morganatic and expressed vexation that ACU was continuing to question the legitimacy of the projected transfers," the defence connection says.

The recognition national again offered Squire a slope draught arsenic a lower-risk alternate to making the 2nd ligament transfer, and Squire again declined that offer, the connection says.

Royal Bank of Canada is besides named arsenic a suspect successful Squire's lawsuit, but RBC has not filed a defence statement.

RBC communications manager Cheryl Brean told CBC News successful an email that RBC "cannot remark connected this substance portion it is earlier the court." 

Access Credit Union has filed a crossclaim against RBC seeking indemnification for immoderate damages the recognition national whitethorn beryllium recovered liable to wage Squire from his lawsuit.

The crossclaim alleges losses Squire whitethorn person suffered "were caused oregon contributed to by RBC." 

Access Credit Union main selling serviceman Adam Monteith said successful an email to CBC News that the recognition national has nary remark connected ongoing litigation. 

Contacted by CBC, Squire said "I'm surely keen to spot the connection of assertion proceed," but that he'll permission the remainder to his lawyers.