Trial opens in alleged Ponzi scheme

The jury trial of a former Kemptville financial planner opened in Ottawa on Thursday, as Bruce Elmore pleaded not guilty to 10 charges, including several counts of fraud over $5,000 in what the Crown claims was a Ponzi scheme.

Elmore, 61,accused of bilking investors out of millions of dollars,is representing himself in the trial.He allegedly committed fraud against clients of his company, Elmore Financial Services, between 1997 and 2003.

The Crown says 35 people from around eastern Ontario invested about $3 million with Elmore's company. But, in 2002, the company went bankrupt.

Crown attorney Mac Lindsay told the jury he would introduce evidence that shows Elmore's business was in serious financial difficulty as early as 1996.

The Crown expects to call 57 witnesses over the next 10 weeks.

The first witness to take the stand Thursday was Paul Fox. In the late 1990s, Fox invested an inheritance with Elmore that was worth $180,000.

Fox said he is a conservative investor. He said Elmore led him to believe that most of the money would be put into guaranteed investment certificates and dividend funds so that his principal would be safe.

He said he only learned that most of his money had been lost when Elmore's company was put into bankruptcy in 2002.

Other investors have toldCBC News similar stories. All said they invested with Elmore hoping to get a good rate of interest while protecting their principal.

Many also said they considered him a friend, spending time at his cottage. None knew that Elmore was in financial trouble as far back as 1996.

The Crown is alleging that Elmore paid investors interest on their investments using money he got from other investors in what is known as a classic Ponzi scheme.

If convicted, Elmore could face up to 14 years in prison.