EX-CANUCK’s JASON GARRISON SUES FINANCIAL ADVISER
Former Vancouver Canucks’s Defenseman, Jason Garrison, is suing his financial advisers, alleging fraudulent financial advice for the purpose of personal profit. The suit claims the financial adviser, Richard Jones sold Jason Garrison a series of unsuitable investment vehicles and insurance policies, which cost him more than $27.6 million.
Garrison, then 28 years old, signed the deal with the Canucks in 2013, the same year he hired Jones and his agency. It is further alleged in the suit that Mr. Jones misrepresented that as a result of his recommendations, the plaintiff would have $43.5 million in capital at the end of 10 years. According to the claim, Garrison had “limited experience with financial matters, investments, life insurance and no experience with financial planning.’’ Garrison advised Jones that he knew his career could end at the end of his contract, and he would need to live off his savings long term.
Over three years, Jones sold Garrison a series of investment vehicles, including three $10-million dollars life insurance policies, as a part of a complex and high-risk investment strategy. However, it is alleged that Jones misrepresented critical details about those policies, including commissions, management fees and the fact that the Investment strategy was under review by the Canada Revenue Agency with an eye to eliminating it as a tax loophole.
“The defendants promoted the sales of insurance policies as a part of a sophisticated tax advantage investment strategy, yet the defendants had knowledge that the strategy was under review, and there was an intention by the federal government to reject the strategy,” the suit alleges.
The suit claims that Garrison was also not made aware of the full costs of the policies, nor was he advised to seek independent tax advice. Also, Jones failed to undertake a needs analysis or financial plan, which would have revealed Garrison didn’t need and couldn’t afford the insurance contracts.
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Here’s a story that did not make the news. Last year, Green, Schafle & Gibbs quietly settled a major lawsuit on behalf of its former NHL hockey player client against that player’s former best friend for fraud and mismanagement.
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