bank of montreal story continued
lucky
How retired oilman lost his millions
Investigators seek former bank officer
Gina Teel and Tamara Gignac
Calgary Herald
Sunday, September 08, 2002
Calgary Herald
This is the BMO branch at 350 7th. Ave. where Anita Koo worked before
leaving the bank.
Chart shows what was accruing in Casanova's accounts according to receipts
provided by Anita Koo, versus what the Bank of Montreal said he held. Anita
Koo's receipts; Casanova's actual bank
ADVERTISEMENT
Retired oilman Salvador Casanova doesn't recall the first time he met Anita
Koo, but he's bound not to forget her anytime soon.
For more than a decade, Casanova, 87, of Mexico City, entrusted the Bank of
Montreal employee with his life savings, money intended as an inheritance
for his six children.
Little did he know how badly his trust was misplaced.
Koo is accused of defrauding Casanova of $9 million US -- or $13.5 million
Cdn -- between 1995 and January 2002 in a deception BMO fraud investigators
continue to unravel to this day.
Casanova is suing Anita Koo, her husband, Tony Koo, their son Jonathan Koo,
and Tony Koo Enterprises Ltd., all of Calgary, for fraud, and the Bank of
Montreal for breach of fiduciary duty, for total damages of $10 million US.
Since the civil suit was filed, Anita and Tony Koo have disappeared.
Jonathan Koo says he has no knowledge of his parent's whereabouts.
Investigators hired by the BMO are trying to locate the Koos and Calgary
RCMP have a file on the matter.
RCMP are awaiting instruction from the BMO before launching a criminal
investigation, said Staff Sgt. George Prouse.
"If the Bank of Montreal elects to come to us with a formal complaint, then
certainly we're prepared to pursue an investigation," he said.
BMO spokesman Ralph Marranca said the bank will probably wait until its own
investigation is completed before making a decision on whether to pursue
criminal charges.
"We're taking a lead role in helping him (Casanova) recover his funds and
helping in the investigation," Marranca said.
"We're working closer with the customer to recover the amount that is at
issue here."
The suit may be languishing in legal limbo, but investigators hired by the
BMO are not. What is known is that Anita Koo used official BMO receipts and
documentation to convince Casanova into making significant deposits into his
U.S. dollar fixed-term deposits under the pretense of building his wealth.
Instead, it's alleged in court documents that she was depleting his accounts
and using the money to support an extravagant lifestyle, including numerous
trips to Mexico City for personal visits with Casanova and his family.
These visits were geared toward keeping her client's trust.
In the meantime, the Koos were allegedly spending Casanova's money like
wildfire, purchasing luxury vehicles, a $1.5-million estate and indulging in
fine jewelry.
The couple owned more than 90 pieces, including diamond Cartier rings, jade
pendants, sapphire earrings, loose gems and Rolex watches. Anita enjoyed
wearing fur coats -- she owned nine -- and designer clothing. The couple
kept approximately 1,000 bottles of fine wine valued at $80,000 in a
temperature-controlled vault.
Here's how the scheme is alleged to have worked according to affidavits and
statements of claim filed by Casanova, the Bank of Montreal and the receiver
Robert Taylor on file at Calgary's Court of Queen's Bench:
In 1992, Casanova held more than $5 million US in deposits at the BMO. His
deposits were to be invested in U.S. dollar fixed-rate term deposit
certificates. The term deposits matured at varying periods and some or all
of the principal was then reinvested into new further U.S. dollar fixed rate
term deposits at prevailing interest rates.
Anita told Casanova that, as each term deposit matured, she would redeem a
portion of the principal and forward it, along with earned interest, to
Casanova.
In 1995, Anita told Casanova she had deposited some of her own savings into
his deposits to "top up" the amount invested equal to the redeemed principal
to combine with the remaining matured principal to purchase a new term
deposit.
The purpose of this manoeuvre was to qualify the new term deposit for a
higher interest rate of an additional two per cent over and above the
prevailing interest rate.
Tucked far away in Mexico City, Casanova had no way of knowing the promised
rate did not exist, or that at no time was such a rate ever offered by the
BMO.
Nor did he have any reason to suspect he was being duped. He was being sent
authentic BMO receipts that, unknown to him, stated an incorrect amount of
interest.
There was no cause for concern, then, when Anita requested Casanova
reimburse her for her purported contribution with cheques payable to her
personally instead of the BMO, or at her direction.
To cover the additional funds supposedly generated by the fraudulent higher
interest rate, Anita sent funds by wire transfer to Casanova's U.S. bank
account in San Antonio, Tex. Anita said the money was interest earned on
deposits when, in fact, the funds were comprised of both interest and
principal from Casanova's own deposits.
All told, Casanova sent Anita cheques and wire transfers totalling $5.4
million US between December 1995 and November 2001, including a $300,000 US
wire transfer at her request to Jonathan Koo's bank account in California
(where he attended university at the time) to purchase a condo.
The bank receipts kept coming, giving Casanova every confidence Koo was
managing his affairs to his satisfaction.
According to his records, which were provided by Koo, his investments were
climbing. In reality, however, Koo was not investing any of her own funds in
Casanova's term deposits at all.
In fact, BMO documents do not reveal any reinvestment of the amounts of the
cheques into Casanova's term deposits.
Court documents allege she deposited the cheques sent by Casanova in
personal accounts held by herself, her husband and her son, and various
other parties.
This includes a U.S. dollar savings account opened on June 11, 1993, at the
Good Fortune Plaza Branch of the HSBC Bank Canada in the joint names of
Anita and Tony Koo.
Anita Koo had little cash of her own.
The HSBC account shows that 85 per cent of the deposits into the account
came directly from Casanova. Once all funds repaid to the account are
factored in, Casanova's input jumps to 95 per cent.
By December 2000, Anita had depleted Casanova's term deposits. Casanova,
meanwhile, had receipts showing he had more than $8.3 million US in
investments.
His lack of funds didn't stop her from continuing the alleged fraud,
however.
She continued sending Casanova original bank deposit receipts as evidence of
amounts supposedly on deposit at the BMO. Then, she changed tactics.
According to court documents, she told Casanova that, in order to continue
to enjoy the higher interest rates, the interest earned had to be rolled
with the reinvested principal.
Casanova provided her with additional funds to "top up" the purported
investments to $1.1 million US, the amount Anita said was needed to gain the
higher interest rates.
The deception continued even after Anita retired from the BMO in February
2001.
It was easy enough: She had official BMO documentation including original
bank deposit receipts in her possession.
Moreover, no one from the BMO ever informed Casanova that Anita was no
longer with the bank.
The fraud ended in January 2002 when Casanova became fed up with Anita's
refusal to honour his request to have his money sent back to Mexico.
His son contacted BMO officials that month only to find out that Anita was
no longer an employee, and hadn't worked there since February 2001.
Anita claims in her statement of defence that she manipulated the accounts
but did so in agreement with Casanova to evade taxes in Canada and the
United States.
While the BMO has seized the Koos' assets, which are now in the hands of a
court-appointed receiver, private investigator James Ritter hints Rolex
watches and luxury automobiles might just be the tip of the iceberg.
"We are proceeding with some further followup inquiries of possible other
assets that have been brought to our attention," he said. "These are in the
form of properties, so we're just verifying that."
© Copyright 2002 Calgary Herald
Eat Dirt
"lucky" <lukcym...@shawnonspam.ca> wrote:
Funny, yesterday I watched a movie called The Great Gig, with Ed Harris.
Great movie showing how easy it is to dupe people. Pro scam artists are
really good at it, they really know how to gain your trust and fly with
it.
So next time you get a random phone call telling you that by investing
only a few bucks will gain you much return on your money, hang up. Don't
try to outsmart these people, you can't. They've been there, done that.
If these were such great opportunities, they wouldn't be calling any joe
blow off the white pages.
--
Eat Dirt (while you can. One day dirt will eat you)
____________________________________________________
Ever wonder how the human foot resembles a rollerblade?
eatdirt339 REMOVE @ yahoo.com
____________________________________________________
Goldfinger
"lucky" <lukcym...@shawnonspam.ca> wrote in message
news:R5Je9.290689$f05.15...@news1.calgary.shaw.ca...
> For more than a decade, Casanova, 87, of Mexico City, entrusted the Bank
of
> Montreal employee with his life savings, money intended as an inheritance
> for his six children.
I wonder if Mr. Casanova has something to be blamed in this incident. How
could anyone entrust millions of dollars to someone he rarely met, living
hundreds of miles away in another country?
Zipperhead
says...
You can't blame him. Chinese people are so honest.
Goldfinger
"Zipperhead" <wa...@compusmart.ab.ca> wrote in message
news:unq5nd2...@corp.supernews.com...
> >
> >I wonder if Mr. Casanova has something to be blamed in this incident.
How
> >could anyone entrust millions of dollars to someone he rarely met, living
> >hundreds of miles away in another country?
> You can't blame him. Chinese people are so honest.
Giving you half a chance, you wouldn't steal that, what, 9 million dollars?
Be honest, don't lie:)
greg
"Zipperhead" <wa...@compusmart.ab.ca> wrote in message
news:unq5nd2...@corp.supernews.com...