A Canadian couple -- both dentists -- is being investigated by the Ontario Securities Commission (OSC) for an alleged $40 million Ponzi scheme.
Many of the victims of the scheme by anesthesiologist Peter Sbaraglia, DDS, and periodontist Mandy Sbaraglia, DDS, were prominent dentists, according to an article in the Star.
According to the OSC's Statement of Allegations, "Sbaraglia, acting on behalf of CO Capital Growth, used investors' funds to repay other investors and to pay for his and his family's personal expenses and not for the benefit of CO investors. In addition, Sbaraglia and his spouse received over $2 million as purported profits earned by them in the Ponzi scheme."
Some 50 investors are trying to recover tens of million in lost funds, according to the Star. Robert Mander, described as the scheme's "kingpin," killed himself prior to a court hearing investigating the matter. Dr. Sbaraglia asserted that he and his wife were victims of Mander's, the Star reported.
One dentist who is now suing Dr. Sbaraglia said he invested $617,000 in six installments between November 2006 and August 2008, and was promised a 25% return on investment that would remain steady as long as he did not withdraw from it, the article stated.
The couple's assets, including their $2.9 million home, have been put into receivership by an Ontario judge. A hearing has been set for March 31, according to the Star.
