Charges laid against former Morton Dew, Cuddy Financial heads

Charlottetown police have charged Frank Harrison Dewand David Hamilton Cudmoreeachwith 26 counts of theft over $5,000 and 26 counts of fraud over $5,000.

Dew, 49, was owner of Morton Dew Limited, a financial services business in Charlottetown.

Cudmore, 56, was owner of Cuddy Financial Management Group, also in Charlottetown.

Police say Cudmore was also an employee of Morton Dew.

• Morton Dew and Cuddy Financial heads declare bankruptcy

The criminal charges filed in Charlottetown Provincial Court list the names of 33victims.

The crimes are alleged to haveoccurredbetween January 2011 and June2015.

Their losses are in the millions- Detective DarrenMacDougall, Charlottetown Police Services

"The victims were very unsophisticated in the management of finances," said Detective Darren MacDougall, Charlottetown Police Services.

"Their losses are in the millions."

The police investigation was extensive. It took 18 months and involved co-operation from several agencies, said MacDougall.

"There were a lot of moving parts," he told CBC. "There was such a volume of material to be collected."

Not licensed to trade in securities,insurance

Some clients laid complaints with police after learning that Morton Dew and Cuddy Financial were under investigation by theP.E.I. Department of Justice, said MacDougall.

• Morton Dew shut down, under investigation

Both men filed for bankruptcy in July 2015after a judge ordered them to pay more than $300,000 to a former client who filed a lawsuitagainst them.

According to the Department of Justice and Public Safety, Dew,Cudmore and their two companies are not licensed to carry on the business of trading in securities or insurance.

An emailfrom the department says after the criminal proceedings are complete, the department "will determine whether further regulatory action is required."

Dew andCudmoreare slated to appear in Charlottetown Provincial Court on October 27.

CBC was unable to reach either Dew or Cudmore for comment.

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