A major securities and insurance investigation by the PEI Department of Justice is making waves on the island as the wrongdoings of two Charlottetown advisors have their former clients on edge.
"We have received about 100 complaints, either via telephone or emails to this point," said Phillip McInnis, an insurance compliance officer with the department. "So we will follow up [on] each one of those. If there are still people out there who would like to contact us, by all means, do so.”
Recently, Frank Harrison Dew and David Hamilton Cudmore, owners of Morton Dew Limited and Cuddy Financial Management Group respectively, were ordered by the Supreme Court to pay more than $300,000 to a former client who had filed a lawsuit against them.
In the lawsuit the client claimed that the two advisors took premiums that were intended for life insurance policies for the client and kept them for themselves; they also defaulted on a $300,000 loan made to the advisors that was supposed to be put into investment products but this never happened.
Not only are the advisors in hot water with clients, it turns out that they’re not in the good books of some of their suppliers either. PPI Solutions’ Atlantic division is owed almost $162,000 for the repayment of sales commissions and is currently suing the advisors.
However, it looks as though anyone caught in the crosshairs of this financial malfeasance could be out of luck.
The two advisors have outstanding debts to various organizations and individuals totaling more than $2.6 million. Both men filed for bankruptcy in late July.