After losing more than $2M in a Ponzi scheme, this man is fighting the CRA to redo his taxes - CBC.ca | Canada News Media
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After losing more than $2M in a Ponzi scheme, this man is fighting the CRA to redo his taxes – CBC.ca

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4 years ago

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For the last year-and-a-half, 70-year-old Bill Janman has studied Canadian tax laws in all their complexity, as he battles the federal government to recoup tax money after losing millions in a Ponzi scheme.

The latest chapter in his fight came Monday, when he presented 700 pages of documents about his case and took the witness stand in Calgary at the Tax Court of Canada.

Janman and his wife lost more than $2 million after investing in Base Finance. They along with hundreds of others collectively lost about $137 million.

Arnold Breitkreutz, his company, Base Finance, and office manager Susan Elizabeth Way were fined and sanctioned in 2019 by the Alberta Securities Commission, which described the case as “among the worst frauds perpetrated in Alberta.” The commission also described Breitkreutz and Way as carrying out “a fraud by deceiving investors and operating a Ponzi scheme.”

Both were arrested by RCMP and face charges of fraud over $5,000 and theft over $5,000 for allegedly using the funds raised to pay off other investors. Their trial is scheduled for next year.

Janman and his wife were never able to recover any of their money and have since tried to amend their tax returns from 2006 to 2011 and 2014 because they included fraudulent T5s from Base Finance. A T5 slip reports the various types of investment income.

Instead of showing an investment return from those years, the T5s should show a loss as a result of the fraud.

Janman knows the millions invested in the scheme are gone, but he wants the Canada Revenue Agency to acknowledge victims of fraud and allow them to make changes to past tax returns.

CRA says couple ‘out of time’

However, the CRA argues that the couple is too late — that the deadlines have passed for the couple to file their notice of objection or apply for an extension of time to do so. The last deadline was in the spring of 2017.

“They are each out of time for all of the tax years,” said Adam Pasichnyk, the federal government lawyer who was representing the CRA, during the hearing. 

Going back and amending those tax returns would result in a collective refund of about $200,000, according to Janman. He said the CRA did offer a partial settlement of about half that amount, but he rejected it because Janman said he has done nothing wrong and is entitled to his full refund.

In court, Janman repeated his argument that there was no reason for him or his wife to file an objection with the CRA because it was only in 2018 that authorities began releasing their findings into Base Finance.

WATCH | Bill Janman says most fraud victims give up on their fight with the CRA, but he won’t:

Janman knows the money he and his wife invested in a Ponzi scheme is gone, but he wants the Canada Revenue Agency to acknowledge victims of fraud and allow them to make changes to past tax returns. 2:16

“We are not fortune tellers nor do we have a crystal ball or any ability to see the future. If we had, we would have known that Base was a Ponzi scheme in 2005, not invested any additional money and not be here today,” he said.

“We could not have filed objections in any of the years because we simply did not know that Base was a Ponzi scheme.”

Janman represents an informal group of about 300 other victims who lost money in the fraud case, most of which are seniors. 

“There are people like us that quit. I just got angry and decided I would see this through,” said Janman, who represented himself and his wife during the hearing because he said they don’t have the money for a lawyer.

“Our case here today is an insignificant amount to Canada Revenue Agency. To us, it’s a big deal.”

The Alberta Securities Commission says Arnold Breitkreutz and Susan Elizabeth Way told investors their money would be secured by mortgages on properties in the province, but instead their invested funds were spent or loaned to others. (David Horemans/CBC)

Justice Kathleen Lyons will make a ruling next week on some aspects of the case. Another hearing will be scheduled in the future.

Investors in Base Finance thought their money was secured by mortgages on real estate in Alberta. Instead, it was loaned to a man to buy oil and gas assets in the U.S. or used to buy properties for personal use, according to authorities.

Some investors were paid so-called interest payments in order to maintain the facade of a legitimate investment operation, but the payouts actually came from newer investors’ money.

Base Finance has gone into receivership and the process is still ongoing.

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What Difference Will You Make to an Employer?

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October 21, 2024

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It’s common knowledge that companies don’t hire the most qualified candidates. Employers hire the person they believe will deliver the best value in exchange for their payroll cost.

Since most job seekers know the above, I’m surprised that so few mention their Employee Value Proposition (EVP). Most job seekers list their education, skills, and experience without substantiating them and expect employers to determine whether they can benefit their company; hence, most resumes and LinkedIn profiles are just a list of opinions—borderline platitudes—that are meaningless and, therefore, have no value. Job seekers need to better explain, along with providing evidence, how they’ll contribute to an employer’s success.

Employers don’t hire opinions (read: talk is cheap); they hire results.

You’re not offering anything tangible when you claim:

 

  • I’m a great communicator.
  • I’m detail oriented.
  • I’m a team player.

 

Tangible:

 

  • “At Global Dynamics, I held quarterly town hall meetings with my 22 sales reps, highlighting our accomplishments, identifying opportunity areas, and recognizing outstanding performers.”
  • “For eight years, I managed Vandelay Industries IT department, overseeing a staff of 18 and a 12-million-dollar budget while coordinating cross-specialty projects. My strong attention to detail is why I never exceeded budget.”
  • “While working at Cyberdyne Systems, I was part of the customer service team, consisting of nine of us, striving to improve our response time. Through collaboration and sharing of best practices, we reduced our average response time from 48 to 12 business hours, resulting in a 35% improvement in customer feedback ratings.”

 

These examples of tangible answers provide employers with what they most want to hear from candidates but rarely do; what value the candidate will bring to the company. Typically, job seekers present their skills, experience, and unsubstantiated opinions and expect recruiters and employers to figure out their value, which is a lazy practice.

Getting hired isn’t based on “I have an MBA in Marketing and Sales,” “I’ve been a web designer for over 15 years,” “I’m young, beautiful and energetic,” blah, blah, blah. Likewise, being rejected isn’t based on “I’m overqualified,” “I’m too old,” “I don’t have enough education,” blah, blah, blah. Getting hired depends entirely on showing employers that you can add value and substance to their company; that you’ll serve a purpose.

When you articulate a solid value offer, the “blah, blah, blah” doesn’t matter. Job seekers focus too much on the “blah, blah, blah,” and when not hired, they say, “It’s not me, it’s…” The biggest mistake I see job seekers make is focusing on the “blah, blah, blah”—their experience and education—believing this is what interests employers. Hiring managers are more interested in whether you can solve the problems the position exists to solve than in your education and experience.

 

Not impressive: Education

Impressive: A track record of achieving tangible results.

 

You aren’t who you say you are; you are what you do.

 

If you want to be somebody who works hard, you have to actually work hard. If you want to be somebody who goes to the gym, you actually have to go to the gym. If you want to be a good friend, spouse, or colleague, you have to actually be a good friend, spouse, or colleague. Actions build reputations, not words.

The biggest challenge job seekers face today is differentiating themselves. To stand out and be memorable, don’t be like most job seekers, someone who’s all talk and no action. Any recruiter or hiring manager will tell you that the job market is heavily populated with job seekers who talk themselves up, talk a “good game” about everything they can “supposedly” do, drop names, etc., but have nothing to show for it.

More than ever, employers want to hear candidates offer a value proposition summarizing what value they bring. If you’re looking for a low-hanging fruit method to differentiate yourself, do what job seekers hardly ever do and make a hard-to-ignore value proposition.

  1. Increase sales: “Based on my experience managing Regina and Saskatoon for PharmaKorp, I’m confident that I can increase BioGen’s sales by no less than 25% in Winnipeg and the surrounding area by the end of 2025.”
  2. Reduce cost: “During my 12 years as Taco Town’s head of purchasing, I renegotiated contracts with key suppliers, resulting in 15% cost savings, saving the company over $450,000 annually. I know I can do the same for The Pasta House.”
  3. Increase customer satisfaction:“During my time at Globex Corporation, I established a systematic feedback mechanism that enabled customers to share their experiences. This led to targeted improvements, increasing our Net Promoter Score by 15 points. I can increase Dunder Mifflin’s net promoter score.”
  4. Save time: “As Zap Delivery’s dispatcher, I implemented advanced routing software that analyzed traffic patterns, reducing average delivery times by 20%. My implementation of this software at Froggy’s Delivery can reduce your delivery times by at least 20%, if not more.”

 

If you want to achieve job search success as soon as possible, structure your job search with a single thread that’s evident and consistent throughout your résumé, LinkedIn profile, cover letters and especially during interviews; clearly convey what difference you’ll make to the employer.

_____________________________________________________________________

 

Nick Kossovan, a well-seasoned veteran of the corporate landscape, offers “unsweetened” job search advice. You can send Nick your questions to artoffindingwork@gmail.com.

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Netflix’s subscriber growth slows as gains from password-sharing crackdown subside

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October 17, 2024

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Netflix on Thursday reported that its subscriber growth slowed dramatically during the summer, a sign the huge gains from the video-streaming service’s crackdown on freeloading viewers is tapering off.

The 5.1 million subscribers that Netflix added during the July-September period represented a 42% decline from the total gained during the same time last year. Even so, the company’s revenue and profit rose at a faster pace than analysts had projected, according to FactSet Research.

Netflix ended September with 282.7 million worldwide subscribers — far more than any other streaming service.

The Los Gatos, California, company earned $2.36 billion, or $5.40 per share, a 41% increase from the same time last year. Revenue climbed 15% from a year ago to $9.82 billion. Netflix management predicted the company’s revenue will rise at the same 15% year-over-year pace during the October-December period, slightly than better than analysts have been expecting.

The strong financial performance in the past quarter coupled with the upbeat forecast eclipsed any worries about slowing subscriber growth. Netflix’s stock price surged nearly 4% in extended trading after the numbers came out, building upon a more than 40% increase in the company’s shares so far this year.

The past quarter’s subscriber gains were the lowest posted in any three-month period since the beginning of last year. That drop-off indicates Netflix is shifting to a new phase after reaping the benefits from a ban on the once-rampant practice of sharing account passwords that enabled an estimated 100 million people watch its popular service without paying for it.

The crackdown, triggered by a rare loss of subscribers coming out of the pandemic in 2022, helped Netflix add 57 million subscribers from June 2022 through this June — an average of more than 7 million per quarter, while many of its industry rivals have been struggling as households curbed their discretionary spending.

Netflix’s gains also were propelled by a low-priced version of its service that included commercials for the first time in its history. The company still is only getting a small fraction of its revenue from the 2-year-old advertising push, but Netflix is intensifying its focus on that segment of its business to help boost its profits.

In a letter to shareholder, Netflix reiterated previous cautionary notes about its expansion into advertising, though the low-priced option including commercials has become its fastest growing segment.

“We have much more work to do improving our offering for advertisers, which will be a priority over the next few years,” Netflix management wrote in the letter.

As part of its evolution, Netflix has been increasingly supplementing its lineup of scripted TV series and movies with live programming, such as a Labor Day spectacle featuring renowned glutton Joey Chestnut setting a world record for gorging on hot dogs in a showdown with his longtime nemesis Takeru Kobayashi.

Netflix will be trying to attract more viewer during the current quarter with a Nov. 15 fight pitting former heavyweight champion Mike Tyson against Jake Paul, a YouTube sensation turned boxer, and two National Football League games on Christmas Day.

The Canadian Press. All rights reserved.

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All Magic Spells (TM) : Top Converting Magic Spell eCommerce Store

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October 17, 2024

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