A company belonging to unlicensed financial adviser Earl Jones, who is accused of bilking investors out of as much as $50 million, was declared bankrupt Wednesday in a Montreal courtroom.

Earl Jones Consultant and Administration Corp. was declared bankrupt at the same time that about 50 of Jones' alleged victims demonstrated outside the courthouse, demanding stronger rules for financial planners and tougher sentences for white-collar crimes.

Bankruptcy trustee Gilles Robillard will now try to figure out exactly how much money -- if any -- is left in the business.

"Time will tell once we go through (the documents)," said Robillard on Wednesday.

"There's a lot of work. You don't go through 20 years of accounting or transactions in three weeks."

According to records, Jones and his wife were paying themselves between $60,000 and $70,000 each month, Robillard said. That cash had been used for things like plane tickets, hotels and expensive dining, records show.

Robillard added that about $40,000 of that money was going to Jones' wife Maxine, who was listed as an employee of the company. However, there isn't evidence that she was actually involved in the business.

Maxine issued a statement earlier this month that said the family "was in the dark" about Jones' business dealings.

"It's outrageous, it's devastating, it's truly devastating," said former investor Ginny Nelles. "The story gets worse and worse."

Records show that other large sums of money were paid to charities, but Robillard declined to get into specifics about which organizations had received funds and the amounts involved.

Robillard also alleged that Jones likely saw the end coming as early as January because there is evidence he began liquidating his personal assets, including his RRSP and his life insurance policy.

Bankruptcy lawyer Neil Stein said a meeting will take place to update creditors within the next three weeks.

Jones, 67, is free on bail after a Tuesday court appearance, during which he was charged with four counts each of fraud and theft.

Alleged Ponzi scheme

Quebec's securities regulator has alleged that Jones operated a Ponzi scheme that bilked investors out of between $30 million and $50 million.

Jones had been in hiding for a number of weeks after clients began complaining that they were unable to access funds they had entrusted to his company.

Cherie Beluse, the daughter of one of Jones' alleged victims, said her mother wakes up each night feeling like "she got punched in the gut."

"It's emotional because I watched her work her entire life to have this independence and this retirement that she felt secure in, that she could feel happy and at peace," Beluse told CTV Montreal outside the courthouse on Wednesday.

"She didn't live large, she didn't spend a lot of money, she lived on very little per month, but she had the knowledge that she had this security and now that is gone."

There may be more than 200 victims, and more charges are possible as the investigation into Jones' actions continues.

So far, authorities have been unable to determine what happened to Jones' liquidated assets or to the money in his corporate account.

Robillard has located about 60 corporate bank accounts, but they contain less than a total of $50,000.

"There's two things that could have happened -- either the money was stolen and it's sitting somewhere or it's been lost or spent," said Robillard.

"He was paying a return of 10 to 12 per cent so if he wasn't investing the money, getting nothing, he was draining on capital all the time."

However, investigators are looking into the possibility that Jones has offshore bank accounts in Bermuda and Ireland.

"We know there have been some dealings with offshore accounts, and we've signified we haven't pinpointed when the money disappeared," said Robillard.

According to Stein, Jones' property and bank accounts are in the process of being seized.

Jones did not enter a plea at his Tuesday court appearance, though his lawyer said he intends to plead not guilty.

Jones was released on $30,000 bail and must abide by a number of conditions. He must surrender his passport and is barred from leaving Quebec, and he can't speak to former clients or oversee anyone else's money.

His next court appearance has been scheduled for Sept. 28.

On Aug. 19, a court will hear a petition to have Jones declared personally bankrupt.

With reports from CTV's Rosemary Thompson and The Canadian Press