Alleged fraudster Earl Jones was declared personally bankrupt on Wednesday.

The action by the Quebec Superior Court in Montreal cleared the way for the next phase of the investigation into the millions of dollars his former clients claim to be missing.

The bankruptcy declaration means Jones’s personal property can soon be put up for sale.

The Autorité des marchés financiers, Quebec’s securities regulator, has accused Jones of diverting as much as $50 million in investments belonging to about 50 investors in an alleged Ponzi scheme.

Jones has been formally charged with four counts each of fraud and theft in connection with four former clients. He is currently out on bail.

Jones’s company, Earl Jones Consulting, was declared bankrupt by Quebec Superior Court in July.

The allegations against Jones have not been proved in court.

IE