Financial scandal in Toronto
צילום: רויטרס
Toronto Jewish community rattled by Ponzi scheme
Son of Israeli immigrants suspected of bilking millions of dollars from unsuspecting investors
The son of Israeli immigrants to Toronto is suspected of bilking millions of dollars from unsuspecting investors by promising attractive returns, in a story that is sending shockwaves through the city's Jewish community.
One of the defrauded investors told Ynet Wednesday that he lost all his money and is currently in debt as result of the apparent Ponzi scheme.
According a National Post report, Tzvi Erez is suspected of eliciting $27 million from Jewish investors by using his personal connections in the city's large Jewish community. According to the report, Erez asked investors for cash advances and promised 30% in annual profits. Police in Canada suspect that Erez never engaged in large-scale deals, as he claimed, and kept all the money to himself.
Members of Toronto's Jewish community told Ynet that Erez's family is well known in Toronto – his father deals with real estate while his mother is a prominent activist in a large Jewish organization. The couple moved to Canada from Israel many years ago and Tzvi Erez himself was born in Canada.
An Israeli living in Toronto who spoke to Ynet says he invested $100,000 with Erez.
"He fooled us. He took all the money I had. I'm not a wealthy person, and now I'm in debt," he said. "He comes from a family that has everything. He got everything he wanted. The entire community here is rattled and everyone has been stunned by the suspicions."
"We reached him through recommendations by prominent figures in the community, such as well-known attorneys," the defrauded investor said. "Everyone knew about him. He was truly an investment bank. People are scared to talk because this is undeclared money, but he fooled all of us…who could believe it will happen with someone from this kind of family?"
The story is currently under a gag order, and the publication of the full details next week is expected to shake up the city's Jewish community, the Toronto man added.
"On Monday, the ground in Toronto will shake," he said. "After the full details are exposed, the community will never be the same."
