A Calgary law firm is considering a class action lawsuit against Brian Malley, the former financial adviser charged with the murder of Innisfail resident Victoria Shachtay.
Jensen Shawa Solomon Duguid Hawkes LLP has posted a notice on its website stating that it is evaluating a potential claim against Malley and Assante Wealth Management (Canada) Ltd., the wealth management firm he was affiliated with. The notice says the claim relates to “investment and financial management decisions made by Mr. Malley for clients of Assante Wealth Management in Red Deer, and regarding Assante Wealth Management’s supervision of Mr. Malley.”
Carsten Jensen, a partner with the firm, told the Advocate he can’t get into specifics about the allegations against Malley and Assante. But he confirmed that Jensen Shawa Solomon Duguid Hawkes has been contacted by some of Malley’s clients.
“We have reason for some substantial concern about what happened to a number of investors.”
One of those investors is a Red Deer businessman, who claims he lost approximately $150,000 as a result of Malley’s actions.
The man, who said he did not want to be identified because he’s worried about retribution, alleges that Malley committed fraudulent acts, including unauthorized trading and investing in higher-risk investments than he was authorized to. The man also alleges that Assante failed to monitor and respond to Malley’s actions.
“There are supposed to be safety nets in place so you can’t trade outside of those risk-tolerance levels,” he said.
The man said he knows of other Malley clients who lost money, including elderly investors. He believes the losses by local residents exceed $1 million.
Malley, who had worked as an independent contractor with Assante since 1998, was arrested in May in connection with the November 2011 bombing in Innisfail that killed Shachtay, a disabled single mother. Malley had served as Shachtay’s financial adviser.
He’s been charged with first-degree murder, causing an explosion likely to cause harm or death, and sending an explosive device. Malley was released from custody on June 29 after posting $10,000 bail, and his case is scheduled to return to court on Aug. 29.
A statement issued by Assante on Friday said Malley’s registration with the Investment Industry Regulatory Organization of Canada (IIROC) was terminated by Assante within a week of his arrest, and that it’s reviewing his activities with respect to all of his client accounts. The statement added that Assante is co-operating with IIROC and the RCMP, and that it’s not in a position to release further information.
The Advocate was not able to obtain an update from IIROC.
Jensen said his law firm has not yet filed a claim against Malley and Assante. It’s waiting to hear from more of Malley’s clients, he explained.
“What we learn in this process will drive how it goes forward.”
Jensen said individuals interested in the potential class action can contact him directly at 1-403-571-1526 or jensenc@jssbarristers.ca.
hrichards@www.reddeeradvocate.com