Court hears of how crooked financial adviser ruined lives
Stories of ruined lives permeated a Hamilton courtroom at the start of a sentencing hearing for financial adviser Scott Reeves, who bilked his clients of millions.
Most of his victims had been saving for their retirement but are now destitute and having to work beyond their late 60s despite health problems and personal family challenges, court heard on Friday before the hearing was adjourned to June 12.
Three of their heartbreaking tales were read out by assistant Crown attorney James Vincelli on their behalf.
Reeves operated through Reeves Financial Services Inc. and Fundex Investments. He pleaded guilty to fraud in October.
Gayle Meehan, 68, said she started working at 14 and lived frugally all her life, including when, as a single parent, she raised her children. “I saved so as not to be a burden on them or society.”
With her savings stolen, she must now keep working despite constant hip and shoulder pain from her job, she said. “Every day, I live in fear that I might have a stroke, cancer or some other disability that could prevent me from working.”
Meehan said she’s had to live in her sister’s basement for two years and now suffers from insomnia and angry outbursts that affect her work and relationships because Reeves has robbed her of what little future she has left.
She can no longer afford a retirement home and will have to wait for subsidized care, she said. Her grown children do not live close by and must work, she added. Meehan said she doesn’t have money to pursue the things that once gave her pleasure. “For the first time in my life, I cannot afford a pet ... Some days I wonder why I should even bother to get out of bed.”
Widow Donna Aiken, 66, had to drop a plan to retire from her dog-grooming business, despite arthritis and bursitis. She said it hurts to know Reeves, a longtime client, paid her for his dog grooming using her money. Worse, he defrauded her of her savings “within six months of my husband’s death,” she added.
Aiken said she now suffers from nightmares and fatigue, is reclusive, lives in fear, and no longer trusts her own judgment. She also cannot afford to spend time with her only child, a son in New Jersey who has incurable gastric and liver cancer, let alone help him financially if necessary, she said.
Reeves’ victims included his niece, Rachel Reeves, who lost most of an inheritance she was going to use to buy a house and start a business.
“Losing a parent and grandparents at a young age was very challenging, but I had always hoped I might be able to transform this loss into something good and give myself an easier future.”
Her uncle’s crimes caused great distress and turmoil in her family, and divided it in irreparable ways, she added.
Dr. Peter Vignjevic, in his statement to court, said Reeves pleaded guilty to stealing $2.5 million from him, but “in fact, stole much more” by trying to take away his business, career, home and life.
Vignjevic had to sell his house and now must work harder and longer. As an only child, he can no longer take good care of his parents as they age, he said.
Vignjevic, who has known Reeves for 20 years, said he had “respected Scott” knowing he had supported many local charities.
“Can you imagine my shock ... to realize that it was my money that funded his philanthropic donations?”
Reeves used Vignjevic’s money to buy his vacation property in Prince Edward County — and to pay for groceries, holidays, rent, staff, clothes, and even regular meals at the Hamilton Club, the doctor said. “Scott made my life a living nightmare, and this nightmare never ends.”