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The PI Financial purchase loans were personally guaranteed by Ng, according to IIROC.
As security for the loans Ng granted security interest in Chippingham securities accounts, and later PI Financial accounts, which he said were owned by him and held tens of millions of dollars.
However, IIROC says Ng did not actually own, control or have trading authority over the securities accounts and he and Metcalfe falsified ownership and control of the collateral used to secure the loan.
For example, Ng falsified the account statements, summaries and screen captures to vastly overstate the value of assets; created fictitious account statements; and altered securities account statements changing clients’ names to his own name.
IIROC said, in reality, accounts held by Ng totalled about $1.9 million.
Metcalfe perpetrated fraud as he directly and actively participated with Ng, said IIROC.
In 2019 and early 2020, Ng borrowed a further $40 million from the Canadian lender, also based on falsified collateral, said IIROC.
In 2019, Ng borrowed another $32 million from a third lender, also based on falsified collateral.
