Election Issues & Platforms - Corruption & Wrongdoing

Corruption and wrongdoing are key issues in Canada from which all else flows and should be paramount in our next Government's platform for election.

The Gomery Commission indicates that greed and corruption permeates our government and that TruthTellers are not protected.

Certainly heath care, education, and security are important, but how much money is robbed from Canadians citizens by white-collar criminals who escape punishment? Adscam represents only hundreds of millions, but the investment industry robbing Canadians represents 100's of billions. We estimate losses due to wrongdoing to be in excess of $1 billion each year and could be in the order of $20 billion per year.

Why is this covered up by the investment industry and the regulators. When SIPA asked the provincial regulators for facts, only the British Columbia Securities Commission provided any information regarding the extent of the problem. They estimated that reported investor losses due to wrongdoing were $100 million each year in B.C. Given that reported losses are only a small fraction of the actual losses and that B.C. is only one province, it is easy to extrapolate to $1 billion.

Given the size of the scandals and frauds that are currently being exposed it suggests that the number is more like $20 billion when some of the individual scams are in the order of $1 billion.

Canadians, particularly seniors and widows, are being robbed of their savings by robber barons who manipulate the public and encourage Canadians to place their trust in an industry that fosters scams like Bre-X, corporate shenanigans like Nortel, Livent, Corel, Eaton's, Air Canada and Stelco that cost Canadians their savings and pensions.

The Mutual Fund Market Timing scandal exposed last year when eight of our largest investment firms admitted to robbing investors to line their own pockets illustrates the cavalier attitude of the investment industry towards Canadians' savings. Of course they admitted no wrongdoing (Is robbing investors not wrong?) but agreed to pay $200 million for their involvement. There are a host of other firms that were not fingered. Canadians probably lost billions.

Then there are scams like Crocus, Portus and Norsheild that cost Canadians (over 50,000 of them) billions of dollars in lost savings.

Now there is the income trust debacle. The investment industry has been allowed to prey on the public and sell them products, that are not regulated in a meaningful way, and deceive seniors into thinking these products offer security of capital and a handsome rate of return. These same seniors who did not want to risk their money by buying equities were sold income trusts that have even more risk.

Many of the unsuitable income trusts have dropped in value virtually from the date of issue and had badly deteriorated before Goodale's September statement. This debacle should not have been allowed to happen. Many seniors will lose a major portion of their savings because they were deceived by an industry that is out of control. The following is list of a dozen of the worst. There are many others that will be revealed in the Accountability Research Report due for release Wednesday, November 23, 2005.

Bankrupt:

Heating Oil Partners BANKRUPT

Unit value drop this year (to November 18) :

Associated Brands 64%

Boyd Group 65%

CanWel Building Materials 65%

Chemtrade Logistics 58%

Connors Brothers 50%

Clean Power 41%

Clearwater Seafoods 59%

Entertainment One 66%

FMF Capital 87%

Menu Foods 77%

Tree Island Wire 47%

Canadians are being robbed of their savings by white collar criminals of the same breed as those who defrauded our Government in the sponsorship scandal. The loot is many billions of dollars each year and this ultimately is paid by the taxpayer.

It is time that Government makes the fight against crime and corruption a priority and mobilizes the Canadian public to help in that fight by introducing legislation that will enable all Canadians in every walk of life to come forward and tell the truth about those who are corrupt and scheme to rob Canadians. TruthTellers should not have to fear retribution.

Government employees lost their jobs when they came forward to tell the truth.

Alberta Securities Commission employees lost their jobs when they came forward to tell the truth.

Employees in the investment industry lost their jobs when they came forward to tell the truth.

Canadians need a Government that recognizes the extent of corruption in Canada and takes action to combat its spread and restore Canada's reputation to regain the trust of our citizens and the rest of the Global community.

Canadians should be protected from robbery and corruption, and be protected when they come forward with the truth.

Canadians should not have to live in fear.

Let us hope that our political representatives will hear this message.

The public must speak out and make their voices heard. Contact your political representative.