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David Karas & Investia Financial Services Inc.

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UPDATE: JUNE 26, 2012
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In June 2012, the defendant's motion for leave to appeal the certification decision was commenced but was unfortunately not completed.  The motion will be completed in November of 2012 with a decision to follow soon thereafter.  Further updates will follow subsequent to the completion of the leave motion.
 

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UPDATE: FEBRUARY 17, 2012
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CERTIFICATION GRANTED!

On February 17, 2012, the Honourable Mr. Justice Bryan Shaughnessy of the Ontario Superior Court of Justice certified a class action in this matter. Justice Shaughnessy’s Reasons for Decision can be found here.

The class will be comprised of all clients of David Karas who borrowed money to invest in mutual funds or segregated funds (the “Leveraging Scheme”) through Money Concepts (Barrie) and held leveraged investments at Money Concepts (Barrie) prior to the branch closing on or about March, 2010.

Official notice of Certification will soon be provided to all class members in accordance with further directions to be provided by the Court.

Further information will be posted as it becomes available.

 

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UPDATE: DECEMBER 15, 2011
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On December 12, 13 and 14, 2011, the Honourable Justice Shaughnessy heard extensive arguments about whether or not the class action commenced against David Karas, and companies associated with David Karas, including Investia Financial Services Incorporated, Money Concepts (Barrie), Diamond Tree Capital Inc. and Financial Victory Associates Inc. for allegedly inappropriately advising clients to participate in a leveraged investment scheme, which resulted in clients sustaining significant financial losses, should be certified as a class action. Justice Shaughnessy reserved his decision, meaning that it will be several weeks before he releases his decision with respect to this matter. Justice Shaughnessy's decision will be available on this website once it is released. We sincerely thank all class members who were able to make it into Oshawa to attend the motion.

We encourage you to continue to monitor our website for any updates in this class action.

 

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UPDATE: MAY 26, 2011
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The Honourable Mr. Justice Shaughnessy of the Ontario Superior Court of Justice has approved the following schedule for the Class Action:

Event Date Required to be Completed Status
The Plaintiff is to serve and file Certification Materials April 29, 2011  Check Mark
The Defendants are to provide their responding Certification Materials July 29, 2011   Check Mark
Best efforts to complete cross-examinations on Affidavits submitted in support of the Certification Motion By September 30, 2011   Check Mark
Motion for Certification December 12, 13 and 14, 2011   Check Mark

 

Check our website regularly for updates regarding the status of the Class Action.

 

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UPDATE: OCTOBER 8, 2010
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MEETING: Tuesday, October 19, 2010 at 7:00 p.m.
Suiteworks Building
92 Caplan Avenue
Barrie, Ontario

Thomson, Rogers and Doucet McBride LLP are hosting an information session in the Suiteworks Building at 92 Caplan Avenue, in Barrie, on Tuesday, October 19, 2010, beginning at 7:00 p.m. If you believe that you may have suffered a financial loss by relying on the advice of David Karas and Money Concepts, we invite you to attend this information session to learn about the class action recently commenced against Karas and Money Concepts. There is no cost or obligation for attending this session. If you intend to attend, please reserve your place at the session by calling 1-888-460-4474.

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Class Action Commenced Against David Karas

On October 4, 2010, a class action was issued against David Karas, a financial advisor located in Barrie, alleging that Karas inappropriately advised clients to participate in a leveraged investment scheme, resulting in these clients sustaining significant financial losses. Also named as Defendants in the claim were companies alleged to be associated with Karas in promoting the leveraged investment scheme, including Investia Financial Services Incorporated, Money Concepts (Barrie), Diamond Tree Capital Inc. and Financial Victory Associates Inc.

The class action claims $2 million in damages for each client of Karas that participated in the leveraged investments scheme, as well as $50 million in punitive and exemplary damages.

The class action claim was launched by dairy farmer George French, a client of Karas that participated in the leveraged investment scheme and suffered devastating financial losses.

See the Amended Statement of Claim, issued October 4, 2010.

If you were a client of Karas who participated in the leveraged investments scheme and would like to sign up to receive information about the class action, please fill out the sign up form below.

Press Release

Media Reports

 

~ Please click here if you were a client of James Stephenson