Two Ontario residents lose $90,000 to private investing

Two CTV News viewers are speaking out after they invested with two different companies and are now concerned their money is gone for good.

“It’s $30,000. It’s my life savings,” said Helen Boodoo of Scarborough.

It was a year and a half ago when Boodoo said someone she knew offered her the chance to invest in a landscaping company.

“She said, ‘Helen, you have the money in the bank, why don’t you invest it with my friend.’ So I took all my money out of the bank and now I’m broke,” said Boodoo.

Boodoo said she was told if she invested $30,000, she would get back her principal plus $3,000 interest in just two months.

She said she had them sign a promissory note, but when it was time for her funds to be returned, Boodoo was told the money was gone and would not be returned.

“I said, ‘I want my money back,’ and they said, ‘We don’t have your money. We spent your money. It’s gone and it was free money,’” Boodoo said.

“Now, I just cry and cry every day.”

Nick Hatzimalis of Richmond Hill also told CTV News he invested his money in private lending.

He said he saw an opportunity to invest in a real estate project and gave a private lending company $60,000.

Hatzimalis said he was told he would receive monthly interest payments for a year and a half and would then get back his entire investment.

“I thought, you know what, I’ll park some money in there and try something different than stocks and bonds,” said Hatzimalis.

After receiving monthly payments for about a year, he said he stopped receiving payments and was informed the investment opportunity was having financial setbacks.

Now, Hatzimalis is worried his entire investment is in jeopardy.

“I’m now in a position where I can’t get my money back, at least not anytime soon,” he said.

“I took that gamble and it bit me, unfortunately.”

Be aware of private lending risks

Zahra Marani, a lawyer with Marani Law, a firm that helps investors with private lending, told CTV News there are risks involved, and people should do research and exercise due diligence before investing.

“Remember that your money is going out there and you want it to be safe, so you should get a third-party opinion,” said Marani.

“(Anyone considering private investing should) go to a lawyer or someone in the industry who is able to review documentation before you release your funds, so you know exactly what you are signing up for.”

Boodoo told CTV News she went to court to try and get her money back, but her case is currently at a standstill.

In Hatzimalis’ matter, he said he is hopeful his funds will eventually be returned, and he is waiting to see what will happen next.

Both said they regret trying private investing and wish they had their money back in the bank.

“I don’t have money, I’m a pensioner,” said Boodoo. “I’m 73-years-old, this is what I was living on.”

“I thought I was going for something safe where I was going to get my money back (but) I would have been better putting the money in a GIC,” said Hatzimalis.