Before Canaccord Capital Corp. forced West VaHackett to resign in March 2007, he borrowed more than $1.5 million from almost a dozen clients, colleagues, friends and relatives. At that time, he was 76 years old and needed to supplement his commissions-based income, which had dwindled to between $12,000 and $13,000 a year. ncouver stockbroker Alan

Hackett told them he would repay their principal, plus 10% interest and a handsome profit bonus from the proceeds of a mysterious “accumulation” account. He gave them almost $10 million in promissory notes.

There were three problems, though. First, three of his creditors were clients. Brokerage firm rules prohibit registrants from borrowing money from clients. On Jan. 13, an Investment Industry Regulatory Organization of Canada hearing panel revoked Hackett’s registration for 10 years — effectively, a lifetime suspension.

Second, Hackett has repeatedly failed to make good on his promise to repay investors. For reasons that are not clear, the accumulation account has not borne any fruit. Creditors are angry and five have filed lawsuits but have not been able to recover any money.

The third problem is Hackett has not provided any meaningful information about the accumulation account. Details are so sketchy that it’s doubtful it even exists.

Canaccord learned of Hackett’s illicit borrowings in February 2007, when one of his clients and lifelong friends, Bruce W. MacDonald, filed a lawsuit against Hackett. MacDonald alleged that he and his wife advanced $605,000 to invest in a deal Hackett claimed was not available to the general public. Hackett had refused to provide any details, except to say it would be very lucrative. He provided them with promissory notes for a total of $2.3 million, but when the notes matured, he gave them nothing but excuses.

IIROC investigators say Hackett told them: “he has nothing in writing to confirm that monies from the accumulation are forthcoming, other than a confidential verbal agreement with various associates who are mainly in the U.S.” Hackett has claimed one of those associates is Tom Ridge, former head of the U.S. Department of Homeland Security.

Making the matter even more bizarre, Hackett says the account is “not an investment” and that he “did not provide any monies or services in return for his expectation” of a return amounting to double-digit millions. He denies he told the MacDonalds or any of his other creditors he was going to invest their money in the account; rather, it was always intended for personal use.

So, what did Hackett do with the $1.5 million he raised? He told IIROC investigators he spent $232,225 on himself and his brother, Murray, who was financially dependent on him; $278,670 as “support” for a Seattle man, Charles Feick (who, it turns out, is a drug addict); and $981,500 to Mark Hiscott, whom Hackett considered to be “like a son.”

Hackett told IIROC he had set up an offshore investment account with Hiscott. Hackett claimed it was worth $10 million and Hiscott was entitled to half. Accordingly, he had given Hiscott a promissory note for $5 million. But, in a familiar refrain, Hackett said he doesn’t have access or control over this account. He told IIROC both this account and the accumulation account “are in the custody of the same associates,” whom he could not identify.

Unhappy with these non-answers, MacDonald’s lawyers got a court decision holding Hackett in contempt. As a result, the court struck Hackett’s statement of defence and entered default judgment against him, but MacDonald has not been able to collect.

Hackett, meanwhile, apparently believes a boatload of cash will wash up on his doorstep and he will be able to repay all his creditors. IE