Sunday, October 04, 2009

A Huge, Suspiscious 'Transaction'

Story here.

ht: Maz2

Before the courts...

London Life's former chief actuary has been ringing alarm bells about the insurance company's policyholders' money for years.


In 1998, he called the transaction of millions from participating policyholders' accounts to a shareholders' account to pay for integration costs "a ridiculous precedent."

The case surrounds the purchase and particularly $220 million in transactions -- $180 million from London Life and $40 million from Great-West -- made to shareholders' accounts of both insurance companies.

The money was moved after Great-West Life outbid the Royal Bank for the London corporate gem, paying $2.95 billion.

Almost immediately, new directors were put in place and the money was ordered transferred.

Some of the new directors were part of the country's corporate elite, including Paul Demarais Sr. and Paul Demarais Jr. Demarais Jr. may be called to testify.

Desmarais (the spelling above is incorrect). A big name in Canadian business and politics. One of the biggest. Behind-the-curtain-folks, y'know, like George Soros in the States...

Relatives of the Chretiens (of former Prime Minster Jean Chretien). Connected to Paul Martin. Squares the Liberal Party circle.

Interestingly, the transactions were approved by the Office of the Superintendent of Financial Institutions whilst the Liberals under Jean Chretien were in power.

Well, at this moment, I feel that it's a bit over my head, as I'm not a financial professional in that particular industry. Anyone who actually knows about this stuff is invited to comment.

It certainly has a smell about it.