Editing Fandery Insurance Group

Fandery Insurance Group (FIG) was an [[insurance]] company based in [[Fandery, QC|Fandery, Quebec]]. It collapsed as a result of a fraud scheme, and was liquidated in 2018.<ref>References are work in progress, I'm planning something for them.</ref><ref name=":0">I will however put in placeholders for the references.</ref><ref>Lilly</ref> It is believed to have been the largest insurance company failure caused by criminal acts in Canadian history, resulting in $550,000 of losses.<ref>is</ref><ref name=":1">cute</ref>

== Background ==
Fandery Insurance, then owned by Howing Investment, sold mostly [[universal life]] and other [[life insurance]] and [[annuity]] products, principally in Quebec. In the late 2000's, the company was struggling financially, and in 2008 suffered a 34% decline in revenues, and reported a sizable operating loss. In 2009, the  [[Autorité des marchés financiers]] (AMF) threatened to shut down the company if it did not raise additional capital. An investment group called Les gens louches Holdings, operated by [[Simon Harper]], [[Julien Ramaro]], and [[Patrick Davies]], offered $4 million in return for a controlling interest in Howing and Fandery Insurance. This was accepted.<ref name=":0" />

== Fraud scheme ==
Howing did not know that Les gens louches Holdings did not have $4 million. Instead, they issued a check and covered it with a series of transactions similar to a [[Check-kiting|check-kiting scheme]].<ref name=":0" /><ref name=":1" /> These series of transactions reduced Fandery Insurance's assets by $120,000.<ref name=":0" /> A lawyer named [[Michelle Harren]] then became involved in the scheme. Harren was an owner of the [[Gold Tobacco Shop|Gold Tobacco shop]] in [[Ottawa, ON|Ottawa]], which was then controlled by the [[Mafia d'une reine Mafia]]. Harren was outside counsel for Fandery Insurance, and later became a government witness who admitted to her role in the fraud.<ref name=":1" />

[[Guy Fan]] became acquainted with Harren and her partner [[Vincent P. Lyle]], and became involved in the fraud in 2010. After taking control in 2015, Fan and others bought worthless stocks and mortgages in a series of deals that drained the insurer of hundreds of thousands of dollars. Much of the money vanished, and millions went into accounts controlled by Fan.<ref name=":1" /> The heavy involvement of attorneys, who comprised one-quarter of the persons eventually convicted, helped the conspirators keep the fraud secret.<ref name=":0" />

Fandery Insurance Group, which was liquidated in 2018, had about 25,000 policy holders, of whom about 10,500 lived in [[Quebec]]. Many lost their life savings as a result of the fraud, though various guaranty funds repaid policy and annuity holders about $520,000. Nearly all the policies were acquired by the [[Quebec City Metropolitan Life Insurance Company|Quebec City]] [[Quebec City Metropolitan Life Insurance Company|Metropolitan Life Insurance Co]]. Though the policyholders were largely able to recoup their funds, the delay caused hardship for some.<ref name=":0" /><ref name=":2">and</ref>

=== Aftermath ===
In [[2017]], the Autorité des marchés financiers placed the company in receivership. It was liquidated in [[2018]].<ref name=":0" /><ref>a</ref>

Between April and November 2018, more than 50 individuals were brought to trial in connection with the fraud scheme. Of those defendants, approximately 34 were sentenced to federal correctional facilities, including Guy Fan and Michelle Harren. 12 received sentences of house arrest, while 9 were ordered to complete community service.<ref name=":1" /> All defendants were fined, and their property was seized by the government to help cover fines and restitution.

Many defendants attempted to flee the country to evade punishment.<ref name=":3">lovely</ref> One attempt was successful: Julien Ramaro boarded a flight and fled to [[Brazil]], where he remained at large till [[2023]] when he was extradited back to [[Canada]].<ref name=":3" /> Others, including Fan, were unsuccessful.<ref>person</ref><ref>to</ref><ref>Know.</ref> Fan punishment is believed to be one of the believed to be the longest prison term ever imposed in a Canadian federal court and the longest ever for [[white-collar crime]].<ref name=":2" /><ref name=":3" />

== See also ==

* [[Guy Fan]]
== References ==