Greg Martel “conspired” with US investor in fraudulent deal

In an apparent violation of a Canadian court order, Victoria’s accused fraudster Greg Martel transferred a US $5.6 million Las Vegas property to American investor Daniel Castellini on August 29, 2023. The property transfer was notarized by “audio-video communication” from Thailand, where Martel was living at the time.

Martel also gave Castellini two Teslas and a “substantial cash payment” of $300,000.

Most of the information about Martel’s transfers is contained in a new 600-page report published by PricewaterhouseCoopers (PwC), the court-appointed receiver and trustee of Martel’s estate. The report consists mainly of a sworn declaration by a senior PwC executive (plus accompanying exhibits). The $300,000 payment was referenced during an emergency hearing on Friday to have a court in the US recognize the cross-border bankruptcy proceedings in Canada.

Martel is the sole owner of My Mortgage Auction Corp. (MMAC), a now-defunct mortgage service that facilitated the financing of short-term bridge loans, purportedly for real estate development projects. However, PwC has been unable to find any evidence the loans existed. It describes MMAC as a “Ponzi scheme orchestrated by Martel,” an allegation he has denied. (Martel has not been charged criminally, and the civil proceedings against him remain ongoing, with no findings made as of yet as to Martel’s role in any Ponzi scheme, or the impropriety of the asset transfers outlined in PwC’s latest declaration.)

In Canada, 862 investors now claim to be owed $295 million. PwC estimates the total number of affected investors could be more than 1,300.

Castellini is a 47-year-old California resident who was introduced to Martel through his fiancé, an employee of Martel’s, according to PwC. Castellini began investing with Martel in December 2022. By February 2023, he claims that he was unable to get payouts on his investments. In June, Castellini and four other plaintiffs filed a $2 million lawsuit against Martel in Nevada. According to court documents, Martel’s Las Vegas residence on Quiet Moon Lane is the subject of the lawsuit, raising the prospect that the property—which has $1.8 million in estimated equity—would be seized and sold to repay Castellini and others.

PwC says Castellini has since hired a private investigator to locate Martel in Thailand. Once the investigator found him, the authorities were purportedly contacted, and Martel was detained on the basis of an expired tourist visa. Castellini then travelled to Thailand to confront Martel. According to PwC’s court filings, Martel and Castellini then “appeared to have cut a deal” in which Martel transferred the Las Vegas residence over to Castellini. According to new information by PwC, Martel also gave him the Teslas and cash.

Counsel for PwC said Castellini’s actions had raised questions about the extent to which he had “aided and abetted a fugitive,” and that he and Martel had “conspired” together by striking the unauthorized, “fraudulent” deal. The BC Supreme Court had previously barred Martel from disposing of, dealing with, or diminishing the value of his assets. PwC will be moving to void the transfer of the Las Vegas property, and will seek further orders for relief to remediate Castellini’s “misconduct.”

Capital Daily’s attempts to contact Castellini were not successful. The allegations against him have not yet been proven in court.

PwC’s efforts to recoup the missing millions have been bankrolled by a Canadian investor and plaintiff who loaned PwC $600,000 to pursue the Las Vegas residence. Once seized, the proceeds from the sale of the property were supposed to pay back investors. During PwC’s attempt to recoup 28 Quiet Moon Lane, Castellini phoned the Canadian investor who provided the $600,000 and attempted to persuade them to withdraw their offer on the basis that the property had already been transferred to him and was no longer available, according to PwC.

Earlier this year, amid mounting pressure from investors, Martel fled to Thailand. His exact whereabouts since April have been the subject of speculation. According to PwC, Martel left Thailand on August 30 after transferring the property to Castellini. His current whereabouts are once again unknown.

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