A former insurance broker in Ontario was charged on July 27 with fraud and theft in a Kitchener, Ont., following a two-year investigation by the Waterloo Regional Police Service.
Daniel Reeve charged with fraud and theft over $5,000. Police allege that he stole $30 million from 175 former clients. Reeve is in custody and is due to appear at a bail hearing on Aug. 3.
“This charge is one step in the process,” said Sgt. Rob Cowan of the Waterloo Regional Police Service. “But the investigation is still ongoing and our investigation goes beyond the primary suspect.”
The investigation involved acts of fraud allegedly committed between 2006 and 2009, when Reeve was CEO of DPR Financial Inc. a Waterloo, Ont.-based independent financial services firm that he founded in 2004.
Police allege that during 2006 and 2009 Reeve persuaded clients to cash out their life savings and place their money in private-equity investments. This includes investment the Jakobstettel Inn, a bed-and-breakfast hotel in St. Jacobs, Ont. Investors reported to police that Reeve promised them a return of up to 20% on their shares in the hotel.
Police allege that none of the clients received any of the promised return on their investment, nor were any repaid their original investment.
The Financial Services Commission of Ontario (FSCO) terminated Reeve’s insurance license in 2006 for an undisclosed reason.
On May 29, 2009, FSCO issued a permanent cease-and-desist order on all of Reeve’s companies, including DPR and Millionaire Mortgage Inc.