CBC News has verified that Greg Martel has been apprehended in Georgia, a country located in the South Caucasus region. Martel, hailing from Victoria, B.C., worked as a mortgage broker and masterminded a Ponzi scheme that amassed over $300 million from 1,700 investors. Following the mandatory receivership of his company, Shop Your Own Mortgage, in 2023, Martel went missing. Investigators from PricewaterhouseCoopers, the trustee overseeing Martel’s receivership and bankruptcy, traced him to Thailand and Dubai.
The specifics of Martel’s arrest, including the date, remain undisclosed. Global Affairs Canada acknowledged the detention of a Canadian national in Georgia and stated that consular officials are offering support and liaising with local authorities while maintaining confidentiality due to privacy concerns.
Martel’s fraudulent scheme involved luring investors with fictitious real estate bridge loan investments, promising exorbitant returns of up to 100% annually. The scheme persisted for years, with initial investors being paid using funds from subsequent investors. The scheme started unraveling in late 2022 when some investors ceased receiving their expected returns. By spring 2023, the scheme had collapsed entirely, leading to a surge in lawsuits against Martel.
PricewaterhouseCoopers estimates that the Ponzi scheme garnered $301 million from investors, of which $210 million was disbursed. The remaining $91 million purportedly went towards losses in options trading, unsuccessful business ventures, and financing Martel’s lavish lifestyle.
Martel has not faced criminal charges but was held in contempt of court for non-cooperation in the receivership proceedings, prompting an arrest warrant. Moreover, a detention order has been issued against him in the United States. While there is no formal extradition agreement between Canada and Georgia, both countries are party to international treaties permitting extradition under specific circumstances.