Earl Jones victims can sue Royal Bank

Their class-action alleges the Royal Bank's Beaconsfield branch in Montreal's West Island was aware that Jones was exploiting his personal account for his financial dealings, which included depositing cheques with double endorsements and forged signatures.

http://www.cbc.ca
July 14, 2010

Earl Jones victims can sue Royal Bank

EarlJonesCBC.jpg

Earl Jones is serving an 11-year prison sentence for fraud.. (Canadian Press)

A Quebec court has authorized a class-action lawsuit against the Royal Bank of Canada launched by victims of convicted fraudster Earl Jones.

The Quebec Superior Court granted permission Wednesday for the $40-million action, launched earlier this year against RBC, where Jones conducted most of his business. The former Montreal financial adviser fell from grace when his Ponzi scheme was revealed last summer.

Appearing at the Montreal courthouse, lawyers for the Royal Bank said they would not challenge a motion filed by the victims' group seeking authorization to sue.

Jones is currently serving 11 years in jail for fraud after he bilked his former clients out of an estimated $50 million over a decade.

His victims have never reclaimed any of their invested money, and many are now living in poverty.

Their class-action alleges the Royal Bank's Beaconsfield branch in Montreal's West Island was aware that Jones was exploiting his personal account for his financial dealings, which included depositing cheques with double endorsements and forged signatures.

According to legal documents filed with the lawsuit, Jones enjoyed a privileged status at the bank because of his reputation in the community.

The suit's petitioner is Virginia Nelles, whose brother and mother lost almost $1 million after investing it with Jones.

http://www.cbc.ca/canada/montreal/story/2010/07/14/royal-bank-class-action-lawsuit.html


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