Only $53,000 of $700,000 investment recovered, Reeve investor testifies
The fraud trial of Daniel P. Reeve resumed Monday, with testimony from investors claiming they lost hundreds of thousands of dollars due to the financial planner.
First on the stand was Barry Cunningham, who owns a trucking company.
He told the court that he and his wife gave Reeve $70,000 to invest in two hotels – the Jakobstettle Inn in St. Jacobs, and another in Fergus.
They had remortgaged their home and emptied their RRSPs to make the investments.
“Daniel gave us a personal guarantee we could go after him for the money” if the deal went sour, Cunningham said.
Instead, Cunningham testified, he and his wife were only ever able to recoup $53,000.
After lunch, it was Brian Crozier’s turn to take the stand.
The Elmira resident testified that he and his wife took $159,000 – their entire savings – out of RRSPs at Reeve’s urging.
They too believed that the money would be invested in a hotel in Fergus.
Crozier testified that Reeve promised to pay the taxes he and his wife owed for cashing their RRSPs, but in the end received “not one cent” from the financier and had to take out a loan to pay the tax bill.
Reeve is accused of bilking 41 people out of approximately $10 million.
He has pleaded not guilty to fraud and other charges.
The trial continues Tuesday.