Earl Jones lawsuit settled by RBC for $17 million
MONTREAL— Given that the victims of Earl Jones’ fraud scheme were mostly senior citizens, time was a factor in determining when, and how, justice would be done.
Four members of the class-action lawsuit against the Royal Bank of Canada had already died by the time the bank announced Tuesday that it had settled the suit for $17 million.
“They’re seniors. We’re talking about a group of elderly victims,” said plaintiff Ginny Nelles. “I’m convinced we had a strong case against the bank, but it was a measured decision.”
The average age of the victims, who number about 150, is 70.
“Put that up against a lengthy court trial with perhaps appeals. We could be in court for another 10 years,” Nelles said. The negotiated settlement still has to be approved by Quebec’s Superior Court. The victims sued Royal Bank for alleged negligence in handling Jones’ account. “RBC has closely examined its role in providing Earl Jones with a bank account and is satisfied that it was not negligent,” the bank said in a statement. “The proposed settlement amount of $17 million is the result of many months of discussion between RBC and the class-plaintiffs and seeks to address some of the financial difficulties the class-plaintiffs faced as a result of entrusting Mr. Jones with their financial affairs.” The fraud perpetrated by Jones started to unravel in 2009 when cheques his former clients were receiving started to bounce. It soon became clear they were victims of a Ponzi scheme. He went underground for three weeks before he was finally arrested at his lawyer’s office. Jones was sentenced in February 2010 to 11 years in prison. The victims estimate actual losses of about $30-$40 million. Lawyers for the victims will take a 25 per cent cut; forensic accountants will also receive a share. Kevin Curran, whose 80-year-old mother was defrauded and still faces mortgage-related problems with other financial institutions, said victims will probably recoup between 30 to 50 cents on the dollar. The estates of those who have died will receive part of the settlement.