Winnipeg police arrest financial adviser for allegedly defrauding elderly client

UPDATE: In December 2018,Aime Grenier paidback the elderly clientthe loan with interest, which came to $247,000. That same month, the criminal allegations against him were dismissed and the Crown chose not to authorize charges.

Financial adviser Aime Edmond Grenier, 50, has been arrested for fraud over $5,000 and obtaining a loan under false pretence.

Grenier turned himself in to police on Tuesday and was released on a promise to appear in court at a later date. He will be officially charged at his next court appearance.

The pending charges stemfrom a $200,000 personal loan Greniergotin 2016 from an elderly client whosuffers from a cognitive impairment, police said.

Grenierallegedly told the 79-year-old man he needed the money to pay the Canada Revenue Agency, but police said only a small fraction ($33,600) went to the tax man.

The rest of the money was invested in private companies, used to pay credit card debt and $100,000 was deposited in Grenier'sbank account and mixed in with his own money, police said.

"The victim, believing that the accused needed the funds to pay his tax debt, provided the loan and the accused signed a promissory note indicating the loan was to be repaid in December 2018 with $10,000 in interest," Winnipeg police Const. TammySkrabeksaid.

Skrabek said during the police investigation, officers discovered Grenier had borrowed money from the man on three other occasions.

"Between 2009 and 2012, the accused convinced the victim to provide him with three separate personal loans in the amounts of $15,000, $17,000 and $20,000, all with zero per centinterest and no repayment terms. No payments were ever made on these loans," Skrabek said.

• Financial adviser 'manipulated' brain injured senior into lending him $200K, police allege

Police said the 79-year-old became brain injured in a serious motor vehicle collision in 1977 and has been receiving $20,000 tax free every month for nearly 30 years.

The injury caused the man to be overly trusting, vulnerable and easily takenadvantage of regarding financial matters, police said.

Grenierhadbeen acting as his financial advisor since at least 2008, and had full control over the elderly man's investments, police said.

"The accused had been taking liberties with the victim's investments, frequently moving his funds and obtaining investment loans on his behalf, without his express knowledge," Skrabek said.

"This did not result in a loss to the victim; in fact, he made small profits on these investments. However, [the] accused would reap the benefit of commissions each time he moved the victim's business or leveraged investment loans on his behalf."

Police also learned Grenierhad "steered" the victim into investing more than $450,000 inhigh-risk investments inseveral private companies, Skrabek said.

Grenierwasn't licensed by the Manitoba Securities Commission to sell securities, but police said he acted as a "facilitator,"introducingthe victim to the owners of the companies;in one case, he took an owner to the senior's home.

"Throughout the investigation it became readily apparent that the victim had very little knowledge of what was being done with his money, nor did he fully comprehend the risks involved in the alternative investments," Skrabek said.

"The victim trusted the accused completely and the accused was leveraging the victim's financial means and generosity to make money and obtain loans."

Police said while some of Grenier's actions were "morally questionable," theywere not "overtly criminal in nature."