A Toronto businessman accused in court filings of being one of two masterminds in a multimillion-dollar COVID-19-related Ponzi scheme can’t be located as angry creditors, their lawyers and shadowy figures with ties to illegal gambling rings try to find him and their money.
Mark E. Cohen, who previously worked in the rental car industry at Toronto’s Pearson International Airport, hasn’t been seen at his North York home since August, according to documents filed with the Ontario Superior Court of Justice. The documents also say that he hasn’t been in contact with investors for months.
While some of those investors have turned to the courts to challenge Cohen, others have taken matters into their own hands, CBC News has learned.
According to a source familiar with the situation, who is not authorized to speak publicly on the matter, some individuals with ties to illegal gambling rings in Woodbridge, north of Toronto, have made late-night visits to the 46-year-old’s former home, and the homes of his family members, making violent threats and demanding to know Cohen’s whereabouts to get their money back.
Cohen is facing three lawsuits accusing him of convincing investors to help him buy used cars that would be resold at huge profits amid the pandemic-triggered vehicle shortage last year.
None of the allegations against him or other defendants named in the filings has been proven in court.
Investors were promised returns of as much as 13 per cent a month on their investments. Some handed over more than $5 million before Cohen allegedly disappeared with their money, according to civil court filings. In total, lawyers for the plaintiffs allege Cohen stole more than $12 million.
COVID-19 has triggered supply chain disruptions and shortages, resulting in prices of new and used cars to surge. (Getty Images)
Locating Cohen has proven difficult.
“I verily believe that Mark Cohen’s whereabouts are presently unknown,” wrote one plaintiff in an affidavit filed in court this past November. “He has refused to disclose his location since August 2021.”
According to court records, Cohen has changed his phone number and blocked others from calling him.
Lawyer Justin Anisman represents nine plaintiffs who are suing Cohen.
“He’s avoiding participation in this lawsuit for whatever reason. He hasn’t fled the country but we haven’t been able to locate him in person,” Anisman said in an interview.
Instead, the court approved lawyers to serve Cohen by email as opposed to in person, which is the usual process.
He has not filed a statement of defence or shown up to a preliminary court proceeding.
Investors suing another businessman
Cohen isn’t the only one being accused of masterminding the used car rental proposal.
Another Toronto businessman, Josh Lieff, is being sued by another set of investors going after both him and Cohen.
Lawyer Robert Karrass is representing those investors.
They allege Lieff acted as the middleman, convincing them Cohen was trustworthy, his business legitimate and accepting the money on Cohen’s behalf without doing due diligence.
“To date, we have not seen any evidence to suggest that this car scheme was in fact real, but rather that somebody was collecting this money and using it to pay off investors,” Karrass said.
To complicate matters, Lieff is also one of the plaintiffs in the lawsuit filed by Anisman against Cohen.
In a statement to CBC News, Lieff’s defence lawyer, Gary Caplan, said his client denies all allegations made against him.
“Mr. Lieff will defend any claim he’s somehow a mastermind in a Ponzi scheme,” said Caplan. He has not yet filed a statement of defence.
Last spring, Josh Lieff and others texted about ramping up their investments in Cohen’s business, according to affidavits and exhibits filed in court. The plaintiffs allege they were led to believe that in March their money had been used to purchase seven Honda Civics and 13 Toyota Rav 4s. (Submitted by Karrass Law)
Cohen and others began contacting investors to pitch what they said would be a lucrative business venture in the fall of 2020, according to a statement of claim filed last month.
He and others allegedly promised he would be able to purchase used vehicles from rental companies across Canada. They included Jeeps, Toyota Camrys, Honda Civics and BMW X3s bought at below market value, according to the court documents.
The alleged plan was to resell them to dealerships at significantly higher prices to generate “extraordinary returns on investment,” the statement of claim says.
“My clients allege Mr. Cohen took advantage of … the well-known fact that the used car market was very profitable around this time period to trick my clients into believing this investment was legitimate,” said Anisman.
They were promised a monthly return ranging between five and 13 per cent and in “typical Ponzi scheme fashion” pressured to keep their money and profits in the business so it would continue to grow, according to the lawsuit.
In the beginning, investors would get back the promised high returns, which encouraged them to invest more, the statement of claim states.
Word of the venture spread among Cohen’s associates in the area, including business owners, a lawyer and a dentist and their family members and friends in Richmond Hill, Thornhill and Vaughan, according to motion records filed in court.
One plaintiff said he learned of the opportunity from chatting with Lieff and another dad while watching their kids play basketball outside their school, according to his affidavit. He ended up investing a total of $800,000.
Court records allege Cohen refunded money to some investors, but many were left empty-handed.
Investors became increasingly frantic trying to track down Cohen and their money this past fall, court documents allege. One plaintiff says Lieff provided a screenshot of text messages he’d sent to Cohen demanding to know what was going on with an order of used cars from Quebec. (Submitted by Karrass Law)
Cohen also allegedly drew in individuals known to be involved with illegal gambling rings in Woodbridge, according to the source.
Assets frozen. Search for millions is on
Meanwhile, the Ontario Superior Court of Justice has temporarily frozen Cohen’s assets and lawyers plan to get further court-ordered access to a trail of bank records in an effort to trace where the money went.
Court documents allege significant amounts of money were transferred to Cohen personally and to numbered companies he controlled, as well as an investment brokerage.
One plaintiff alleges he discovered bank accounts shown above and associated with Cohen’s car business had been drained around the same time Cohen stopped responding to investors, according to an affidavit filed in court. (Submitted by Karrass Law)
Next month, lawyers for the plaintiffs will ask a court for a so-called Mareva injunction, which if granted would require Cohen to disclose all his assets in Canada and worldwide.
It would also compel Canadian financial institutions to reveal details of his accounts and transactions.
Toronto lawyer Monique Jilesen, who is not associated with this case but is an expert in civil fraud, said the Mareva injunction is a “powerful legal tool” to trace where and to whom money has been sent within Canada.
If it’s sent offshore, however, she said, “it can be a very tedious, long and expensive process” to recover.
Human Resources Officers must be very busy these days what with the general turnover of employees in our retail and business sectors. It is hard enough to find skilled people let alone potential employees willing to be trained. Then after the training, a few weeks go by then they come to you and ask for a raise. You refuse as there simply is no excess money in the budget and away they fly to wherever they come from, trained but not willing to put in the time to achieve that wanted raise.
I have had potentials come in and we give them a test to see if they do indeed know how to weld, polish or work with wood. 2-10 we hire, and one of those is gone in a week or two. Ask that they want overtime, and their laughter leaving the building is loud and unsettling. Housing starts are doing well but way behind because those trades needed to finish a project simply don’t come to the site, with delay after delay. Some people’s attitudes are just too funny. A recent graduate from a Ivy League university came in for an interview. The position was mid-management potential, but when we told them a three month period was needed and then they would make the big bucks they disappeared as fast as they arrived.
Government agencies are really no help, sending us people unsuited or unwilling to carry out the jobs we offer. Handing money over to staffing firms whose referrals are weak and ineffectual. Perhaps with the Fall and Winter upon us, these folks will have to find work and stop playing on the golf course or cottaging away. Tried to hire new arrivals in Canada but it is truly difficult to find someone who has a real identity card and is approved to live and work here. Who do we hire? Several years ago my father’s firm was rocking and rolling with all sorts of work. It was a summer day when the immigration officers arrived and 30+ employees hit the bricks almost immediately. The investigation that followed had threats of fines thrown at us by the officials. Good thing we kept excellent records, photos and digital copies. We had to prove the illegal documents given to us were as good as the real McCoy.
Restauranteurs, builders, manufacturers, finishers, trades-based firms, and warehousing are all suspect in hiring illegals, yet that becomes secondary as Toronto increases its minimum wage again bringing our payroll up another $120,000. Survival in Canada’s financial and business sectors is questionable for many. Good luck Chuck!. at least your carbon tax refund check should be arriving soon.
NORMAN WELLS, N.W.T. – Imperial Oil says it will temporarily reduce its fuel prices in a Northwest Territories community that has seen costs skyrocket due to low water on the Mackenzie River forcing the cancellation of the summer barge resupply season.
Imperial says in a Facebook post it will cut the air transportation portion that’s included in its wholesale price in Norman Wells for diesel fuel, or heating oil, from $3.38 per litre to $1.69 per litre, starting Tuesday.
The air transportation increase, it further states, will be implemented over a longer period.
It says Imperial is closely monitoring how much fuel needs to be airlifted to the Norman Wells area to prevent runouts until the winter road season begins and supplies can be replenished.
Gasoline and heating fuel prices approached $5 a litre at the start of this month.
Norman Wells’ town council declared a local emergency on humanitarian grounds last week as some of its 700 residents said they were facing monthly fuel bills coming to more than $5,000.
“The wholesale price increase that Imperial has applied is strictly to cover the air transportation costs. There is no Imperial profit margin included on the wholesale price. Imperial does not set prices at the retail level,” Imperial’s statement on Monday said.
The statement further said Imperial is working closely with the Northwest Territories government on ways to help residents in the near term.
“Imperial Oil’s decision to lower the price of home heating fuel offers immediate relief to residents facing financial pressures. This step reflects a swift response by Imperial Oil to discussions with the GNWT and will help ease short-term financial burdens on residents,” Caroline Wawzonek, Deputy Premier and Minister of Finance and Infrastructure, said in a news release Monday.
Wawzonek also noted the Territories government has supported the community with implementation of a fund supporting businesses and communities impacted by barge cancellations. She said there have also been increases to the Senior Home Heating Subsidy in Norman Wells, and continued support for heating costs for eligible Income Assistance recipients.
Additionally, she said the government has donated $150,000 to the Norman Wells food bank.
In its declaration of a state of emergency, the town said the mayor and council recognized the recent hike in fuel prices has strained household budgets, raised transportation costs, and affected local businesses.
It added that for the next three months, water and sewer service fees will be waived for all residents and businesses.
This report by The Canadian Press was first published Oct. 21, 2024.
TORONTO – A new report says many Canadian business leaders are worried about economic uncertainties related to the looming U.S. election.
The survey by KPMG in Canada of 735 small- and medium-sized businesses says 87 per cent fear the Canadian economy could become “collateral damage” from American protectionist policies that lead to less favourable trade deals and increased tariffs
It says that due to those concerns, 85 per cent of business leaders in Canada polled are reviewing their business strategies to prepare for a change in leadership.
The concerns are primarily being felt by larger Canadian companies and sectors that are highly integrated with the U.S. economy, such as manufacturing, automotive, transportation and warehousing, energy and natural resources, as well as technology, media and telecommunications.
Shaira Nanji, a KPMG Law partner in its tax practice, says the prospect of further changes to economic and trade policies in the U.S. means some Canadian firms will need to look for ways to mitigate added costs and take advantage of potential trade relief provisions to remain competitive.
Both presidential candidates have campaigned on protectionist policies that could cause uncertainty for Canadian trade, and whoever takes the White House will be in charge during the review of the United States-Mexico-Canada Agreement in 2026.
This report by The Canadian Press was first published Oct. 22, 2024.
