Creditors' meeting set for Martel firm, debts in excess of $226 million

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Creditors' meeting set for Martel firm, debts in excess of $226 million
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Debts in excess of $226 million and a list of creditors that includes more than 1,200 investors

The trustee overseeing the bankruptcy of My Mortgage Auction, a company once controlled by Victoria mortgage broker Greg Martel, had better book a large conference room for the first meeting of creditors.

The receiver has been digging for a month to find out what happened to more than $226 million investors sunk into Martel’s company My Mortgage Auction Corp. for short-term bridge loans for commercial and residential real estate deals. The money was to be repaid with high interest.While the receiver has found very little money or assets in the last month of investigation, it did find evidence Martel had recently made preferential interest payments to some investors.

The full statement of property shows the trustee now has control of just $292,586 between funds that are being held by the court and cash on hand already recovered.

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