A class action suit has been filed against the man accused of murdering Vicky Shachtay, his wife and the investment company he was an adviser for.
The Calgary law firm of Jensen Shawa Solomon Duguid Hawkes LLP filed a statement of claim against Brian Malley, Christine Malley, Assante Wealth Management (Canada) Ltd., and Assante Capital Management Ltd. in the Court of Queen's Bench in Red Deer last week.
The suit seeks $50 million for losses, $20 million in general damages and $10 million in punitive damages.
The firm had previously posted on its website it was considering a class action suit on behalf of those who had money invested with Brian Malley against the adviser, his wife who they allege was also his supervisor and Assante, which it alleges did not supervise his investments properly.
The statement of claim has not yet been certified by a judge. Such a statement contains allegations not yet proven in court.
Carsten Jensen, a partner with the law firm, said they have talked to dozens of former clients who've approached them. “The most recent numbers are approaching a hundred,” he said. A class action suit includes all those who were affected by the alleged activities unless they specifically opt out of the proceedings.
The statement of claim lists specific plaintiffs as David Jamieson of Calgary and Allan Rue from Vermillion.
Jensen said they held a public meeting in Red Deer and about 85 people came out to ask questions about the suit. Another meeting is planned for Rocky Mountain House.
Examples of the allegations include that Malley disregarded the stated investment goals of clients and “engaged in a one-size fits all investment strategy.” They allege Assante failed to supervise Malley to ensure he was following regulatory requirements and the company's own policies and practices.
There's an allegation that Malley's wife Christine had a conflict of interest as she had a financial interest in a company Malley invested his clients in. That allegation is followed by another that states after Malley was arrested, she sold 700,000 shares of that company worth approximately $300,000.
Other allegations against Assante include “ignoring unusual trades or trading patterns” and failing to have proper procedures and safeguards in place to ensure Assante's policies and practices were followed. An additional allegation is that after Malley was arrested Assante failed to handle the accounts “appropriately or at all.”
The statement of claim contains numerous other allegations about all the named defendants.
Assante provided a written statement as a response to inquiries with them about the suit.
It says they have been working with a number of former and current clients to resolve concerns about how their accounts were handled by Malley.
At the time, Oct. 3, they had not been served with the claim but had received a copy they said appears to have been issued by the Court of Queen's Bench.
“In our experience, it is extremely unusual to advance such claims through a class action proceeding. Assante will continue to work with our clients and former clients to resolve their concerns. With respect to the claim, Assante will review it and respond to it at the appropriate time,” the statement reads.
Malley was arrested in Innisfail in May and is facing criminal charges of first-degree murder, causing an explosion likely to cause serious bodily harm, death or damage to property and sending or delivering to a person an explosive device.
He is scheduled to have a preliminary hearing in Red Deer in September 2013. In the meantime, he remains out on $10,000 bail. He was granted bail in an Edmonton court on June 28.
Shachtay died after she opened a package that was triggered to explode at her ground-level apartment in Innisfail Nov. 25, 2011.
