In a shocking case of alleged financial elder abuse, a 68-year-old Winnipeg retiree, Peter Squire, is suing Access Credit Union and the Royal Bank of Canada (RBC) after losing nearly $650,000 in retirement funds to an alleged fraud scheme. The lawsuit, filed at the Court of King’s Bench, accuses the financial institutions of failing to protect Squire from a sophisticated scam that targeted vulnerable seniors.
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The Fraud Scheme: How It Unfolded
In November 2022, Squire received an unsolicited phone call from an individual posing as a senior portfolio manager from the Bank of Montreal, referred to in the lawsuit as “John Doe.” Gaining Squire’s trust, Doe persuaded him to transfer significant sums of money from his Access Credit Union retirement account.
Squire executed two electronic transfers—one for $175,000 and another for $473,290.08—into a Toronto RBC account under the name B21 Trade (Canada) Ltd. The lawsuit alleges that this account was controlled by fraudsters, who exploited it to siphon funds from multiple victims.
Allegations Against Access Credit Union and RBC
The lawsuit claims that both Access Credit Union and RBC should have taken preventive measures to thwart the fraud. According to the lawsuit:
- Access Credit Union: The credit union is accused of negligent, reckless, or knowing facilitation of the fraud. The lawsuit argues that the credit union failed to recognize red flags that suggested Squire might be a victim of a scam. By not questioning the legitimacy of the transactions and not monitoring for signs of financial abuse, Access Credit Union allegedly breached its duty of care.
- Royal Bank of Canada (RBC): The lawsuit contends that RBC should have had processes in place to detect and prevent the operation of fraudulent accounts. The claim suggests that RBC either failed to implement these processes effectively or that the existing procedures were insufficient, allowing B21 Trade’s account to continue operating and facilitating the fraud.
Red Flags and Breach of Duty
The lawsuit highlights several red flags that should have alerted both financial institutions:
- Unsolicited Contact: The transaction instructions originated from an unsolicited phone call, a common tactic used by fraudsters.
- Large Transfers: The entire balance of Squire’s retirement account—nearly $650,000—was moved in two transactions, raising concerns about the legitimacy of the request.
- Unknown Recipient: The recipient’s relationship with Squire and their role in the transaction were unclear, which should have prompted further inquiry.
The lawsuit argues that by ignoring these warning signs and failing to conduct appropriate due diligence, both Access Credit Union and RBC failed in their duty to protect Squire from financial abuse.
Legal Basis and Claims
Squire’s lawsuit is based on the Seniors’ Rights and Elder Abuse Protection Act of Manitoba. This legislation provides protections against financial elder abuse and imposes an explicit duty on financial institutions to report and prevent such abuse.
The lawsuit asserts that:
- Access Credit Union: The credit union should have been trained to recognize and respond to signs of elder financial abuse. Their failure to do so, and their subsequent denial of liability, is seen as a breach of their legal and ethical obligations.
- RBC: The lawsuit claims RBC’s failure to detect and prevent the fraudulent activity involving B21 Trade’s account amounts to negligence. RBC is accused of allowing the account to facilitate the fraud without proper scrutiny.
Current Status and Impact
As of now, Access Credit Union and RBC have not commented on the ongoing litigation. The lawsuit seeks unspecified damages from both institutions. This case underscores the need for stringent protective measures and awareness within financial institutions to safeguard vulnerable individuals from financial exploitation.
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Peter Squire’s legal battle against Access Credit Union and RBC highlights critical issues in the protection of elderly individuals from financial fraud. The outcome of this case could set important precedents for how financial institutions handle and prevent elder abuse, emphasizing the need for rigorous safeguards and responsive actions to protect the most vulnerable members of our society.