Two Ontario residents lose $90,000 to private investing

Two CTV News viewers are worried their money is gone forever after investing in two different companies.

Scarborough resident Helen Budo said:

“That was my entire life savings of $30,000.”

A year and a half ago, Budo said an acquaintance suggested she invest in a landscaping company.

“He said to me, ‘Helen, you put your money in the bank, why don’t you invest with my friend?’ I took all my money out of the bank and now I have nothing.”

Budo said she was told that if she invested $30,000, she would receive $3,000 in interest in two months on top of the principal.

She said they made her sign a promissory note, but when it was time to return the money, they told her it was gone and she wouldn’t get it back.

“I said I want my money back,” Budo said, frustrated. “They said, ‘We don’t have any money, your money is gone, it’s gone, and it was free money.’”

“I just cry every day now,” he added.

Richmond Hill resident Nick Hatzimalis told CTV News that he had invested $60,000 in a private equity firm.

“I saw an opportunity to invest in a real estate project, and I said, ‘Let me put some money in there, let me try it, something different from stocks and bonds.’”

Hatzimalis says he initially made monthly payments for about a year, but then the payments stopped and he was told the project was in financial trouble.

Now he’s worried he’ll lose all his money.

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

“I took a risk, but unfortunately I got hit.”

Beware of the risks of private equity investments

“There are risks in these types of investments, and people should do their due diligence and be cautious before investing,” Zahra Marani, an attorney with Marani Law, which helps investors with private equity, told CTV News.

“Remember, when you send your money out, you want to make sure it’s in a safe place. It’s best to consult a legal professional or a professional in this field to review the documents before you deposit the money and know exactly what you’re investing in.”

Budo says he’s taken his money to court, but the case is currently in limbo.

Hatzimalis is also hopeful that his money will be returned in the future and is waiting to see what happens.

Both men said they regretted going into private equity and wished they had kept their money in the bank.

“I have no money, I’m retired. I’m 73 years old and I was living on this,” said Bodo.

“I thought I was doing something safe and getting my money back. I wish I had put the money in a Guaranteed Investment Account (GIC) back then,” said Hatzimalis.

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