Embattled London financial advisor suffers legal setback

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A court has issued a garnishment order against a former London financial advisor accused of defrauding elderly clients out of more than $2 million.

The recent order from the Ontario Superior Court of Justice is the latest legal setback for Robert (Randy) Hawken, who operated Dufferin Financial Group before retiring in the spring.

Hawken, 66, faces nearly two dozen criminal charges and mounting civil lawsuits and had his assets frozen amid allegations he defrauded clients out of more than $2 million during the past two decades.

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A notice of garnishment for $7,700 was issued against Hawken as part of an ongoing $580,000 lawsuit launched in September by a Mt. Brydges couple, who allege Hawken convinced them to invest $257,000 into a non-existent guaranteed investment certificate (GIC) between 2013 and 2024.

The couple, beef and cash crop farmers in their 80s, previously brought forward a successful motion asking the court to freeze all assets belonging to Hawken, his wife Cheryl and an incorporated company he controls, Amsaral Holdings. As part of that motion, the couple was awarded $7,500 in legal fees plus interest.

The notice of garnishment issued Nov. 27 lists the couple as the creditors, Hawken as debtor and Exclusive Rentals Ltd. as the garnishee.

Hawken is a past or current client of Exclusive Rentals, a London-based property rental company, and is owed money by the company, according to an affidavit filed as part of the case.

Exclusive Rentals didn’t respond to a request for comment Thursday, nor did lawyers for the Hawkens or the Mt. Brydges couple.

London police arrested Hawken on Sept. 12 and charged him with fraud of more than $5,000 and possessing property obtained by crime valued at more than $5,000. Investigators alleged he defrauded 18 people out of $2 million by collecting money for investments never made, dating back to 2003.

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Court documents show Hawken faces 20 additional charges – 18 counts of fraud and two counts of possession of stolen property – and the list of complainants has grown to 30 people.

Eleven lawsuits were launched against Hawken last year – the most recent was filed in December – by former clients, some of whom also listed Cheryl Hawken and Amsaral Holdings as defendants.

The plaintiffs, including the mother of a London homicide victim, allege Hawken encouraged them to invest in GICs with annual interest rates between four and five per cent, but their money wasn’t invested and their initial investment never returned.

London police contacted the complainants in the spring and told them they’d been identified as victims in a potential fraud after a staff member at Dufferin Financial Group tipped off police and provided a list of the alleged victims, one statement of claim alleges.

Statements of claim and statements of defence include allegations not yet tested in court.

The Hawkens misappropriated the money invested with Dufferin Financial Group and used it to support their lifestyle, including to pay the mortgages, taxes and upkeep for two houses in London and another in Grand Bend, another statement of claim alleges.

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Two of those properties – 554 Waterloo St. and 558 Waterloo St. in London – were listed for sale in March. The listing price for both properties was reduced several times before they were taken off the market in September. Hawken is living in the Grand Bend home.

The asset freeze order applies to all three of those properties.

A judgment has been issued in one of the lawsuits against Hawken: the case of a couple who were seeking $230,000 in investment losses and other damages. In September, a judge ruled Hawken, his wife and Amsaral must pay the couple $78,000 plus $14,500 in costs and interest.

dcarruthers@postmedia.com

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