'Desperate' Reeve asked for loans after separation, ex-wife testifies
A different side of Daniel P. Reeve’s financial picture emerged in a Kitchener courtroom on Thursday.
Reeve’s trial, which is dealing with accusations he defrauded 41 people out of $10 million, has been ongoing since June.
In that time, the court has heard from a variety of witnesses who invested their money with Reeve, only to see promised returns never turn to path.
Thursday, it was Cheryl Reeve – the financier’s ex-wife – who took the stand.
Much of her testimony focused on the aftermath of the couple’s separation, which occurred in 2007 after 22 years of marriage.
Initially, Daniel P. Reeve was to pay $18,000 per month in child and spousal support.
That changed when Cheryl Reeve decided she didn’t want to have to deal with her ex-husband every month.
Instead, Daniel P. Reeve agreed to pay six installments of $500,000 over a nine-month period.
Cheryl Reeve testified that the installments weren’t always paid in time, and ended when police began investigating Reeve.
“I know I got over $2 million in total, but not $3 million,” she said.
After the separation, Cheryl Reeve said, her ex-husband would occasionally ask her for loans.
She remembered lending him $100,000, $80,000 and one or two smaller sums.
“I could tell he was desperate,” she testified.
“He had a sense of urgency.”
In all cases, she said, the loans were paid back in short order.
Court also heard that Daniel P. Reeve was “terrified” when the idea of auditing his finances came up during the separation proceedings.
“He was very angry and didn’t want me to do that,” Cheryl Reeve said.
Defence lawyers declined the opportunity to cross-examine Cheryl Reeve.
Daniel P. Reeve has pleaded not guilty to fraud over $5,000 and defrauding the public.
The trial continues Friday.