Thursday, September 22, 2011

Former CL financial director says Duprey made bad investments with other people's money

Michael Carballo was on the witness stand again Wednesday at the Clico/HCU enquiry talking about irregularities at Clico and its parent company, CL Financial and the way CL's former chairman Lawrence Duprey spent the company's money, paying himself $5 million a month.

The former Financial Director of the conglomerate has been giving testimony since Monday in which he spoke of financial irregularities and irresponsible spending.

He followed that same line Wednesday, pointing for Duprey as a man who had a penchant for making deals and spending millions of dollars of other people's money on very risky investments.

Carballo said Duprey used Clico a "cash cow" to satisfy addiction to spending on bad deals. Carballo also revealed that there was no document outlining how Duprey would repay the money he was taking from Clico.

Senior Counsel Neil Bisnath, representing Clico, suggested that that was easy for Duprey since the money he was investing was not his.

Bisnath suggested that Duprey was running an operation similar to a ponzi scheme through which he paid himself exorbitant sums of money while policy holders waited for their money.

Carballo said CL billed Clico for consultancy services in order to pay Duprey $5 million per month.

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Jai & Sero

Jai & Sero

Our family at home in Toronto 2008

Our family at home in Toronto 2008
Amit, Heather, Fuzz, Aj, Jiv, Shiva, Rampa, Sero, Jai