Court freezes assets of London financial advisor accused of $2M fraud

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A court order has been issued to freeze the assets of a former London financial advisor accused of defrauding more than a dozen clients out of nearly $2 million.

London police arrested Robert (Randy) Hawken, 66, on Sept. 12 and charged him with fraud over $5,000 and possessing property obtained by crime valued at more than $5,000.

Investigators allege 18 people were defrauded of $1.99 million by Hawken, who they contend collected money for investments never made, dating back as far as 2003. Court documents list an additional six complainants in the case.

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Hawken, who operated Dufferin Financial Group before retiring in the spring, faces a mounting tally of lawsuits from former clients, most of them seniors, who allege he knowingly defrauded them by selling bogus investments.

Statements of claim contain allegations that have not been tested in court.

Superior Court Justice Kelly Gorman issued an order on Oct. 25 freezing all assets belonging to Hawken, his wife Cheryl and an incorporated company he controls, Amsaral Holdings.

The order applies to three properties at 554 Waterloo St. and 558 Waterloo St. in London and 10138 Edmonds Blvd. in Grand Bend.

Both of the Waterloo Street houses were listed for sale in March. The listing price for both properties was slashed multiple times before they were taken off the market in September.

Hawken was given seven days to disclose information related to all accounts and assets held with financial institutions and brokerages including account numbers, balance statements and a list of real estate, shares, securities, investments, insurance policies, annuities and other assets.

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“If you, the defendant, disobey this order you may be held to be in contempt of court and may be imprisoned, fined or have your assets seized,” the order says.

Commercial litigation lawyer John Brennan of JBrennan Law, who is representing two complainants in a civil suit against Hawken but wasn’t involved in the motion that led to the order, said this type of court decision is made to prevent assets from being dissipated or moved out of reach while a legal claim is ongoing.

“It’s not uncommon to be seeing these kinds of motions brought in cases involving (alleged) fraud, breach of trust or when there’s a risk that the defendant may dispose of their assets to avoid satisfying a potential judgment,” Brennan said.

The order was obtained through a motion brought forward by a couple who launched a $580,000 lawsuit against Hawken on Sept. 27.

The couple declined comment, citing the ongoing case before the courts.

To obtain this type of order, Brennan said, plaintiffs must show evidence supporting their claim that there’s a risk a defendant might conceal assets.

“So it’s a pretty significant remedy,” he said.

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The order requires all financial institutions freeze and “prevent any dealing with any and all of the defendant’s assets” unless they’re given court permission.

Those financial institutions are further instructed to provide copies of statement for all frozen accounts, along with copies of all cheques and transfers issued or deposited by the Hawkens and Amsaral Holdings dating back to Dec. 1, 2023.

Under the order, which will be lifted if the Hawkens pay the defendants $625,000, plus 25 per cent for court costs, the Hawkens can apply to use money from their accounts for “ordinary living expenses and legal advice and representation.”

Jean Zak, 81, alleges Hawken defrauded her out of more than $100,000.

“That is good news,” she said after hearing about the recent court order.

The Free Press interviewed multiple complainants in the case and reviewed court filings that allege Hawken encouraged his clients, many of whom had invested with him for over a decade, to buy guaranteed investment certificates with annual interest rates between four and five per cent.

But the complainants allege their money was never invested, despite Hawken sending them financial statement that included a certificate number, and their principal amounts were not returned.

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London police contacted the complainants in the spring and told them they’d been identified as victims in a potential fraud.

It was a staff member at Dufferin Financial Group that tipped off police and provided a list of the alleged victims, according to one of the lawsuits.

Hawken is now living at his house in Grand Bend, where he declined an interview request when visited by a reporter last month.

“My lawyer told me not to talk about it,” he said at the time.

Attempts to reach Hawken and his wife by phone Tuesday were unsuccessful.

After his arrest, Hawken was released on an undertaking – a document created by either a court or police that places the charged person under certain conditions —and is scheduled to return to court Nov. 26.

dcarruthers@postmedia.com

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