'Crypto king' associate operated parallel Ponzi scheme while living lavish lifestyle, court documents allege
'Crypto king' associate operated parallel Ponzi scheme while living lavish lifestyle, court documents allege
Colin Murphy, one of Aiden Pleterski’s “originators,” is seen in a photo posted on Instagram (tspvisuals).
An associate of Ontario’s self-described “crypto king” was operating his own fraud scam parallel to the multi-million dollar Ponzi scheme, court documents allege.
Colin Murphy, 26, is being accused of operating a Ponzi scheme within a Ponzi scheme after an Oshawa, Ont. resident launched a civil lawsuit against him in December to recover $270,000 in investments.
“What is alleged is that Murphy was operating his own investment program parallel to what Pleterski was operating,” Norman Groot, a fraud recovery lawyer representing the investor, told CTV News Toronto.
WHAT HAPPENED?
Beginning in June 2021, Groot’s client said he started transferring Murphy money for Pleterski to invest, which Murphy claimed grew to $878,444.60 at its height, according to a notice of action filed in December.
At the onset, Murphy showed the investor his Porsche and Lamborghini as evidence of his returns on investments, which he made through Pleterski’s trades, the legal notice says. Largely through word of mouth, Pleterski was gaining a reputation for the “significant returns” he was making on investments.
Murphy also stored “boxes of cash” in his grandfather’s house, which he claimed were returns stored for other investors, according to legal documents.
After almost a year of investing with Murphy, Groot’s client wanted to cash in. In WhatsApp messages included in an affidavit, the investor told Murphy the money he had transferred was his life’s savings.
At that point, Murphy began to reduce his communications with the investor, the documents allege.
Colin Murphy takes a photo at Upper Canada Mall in Newmarket, Ont. (Instagram).
In texts included in the affidavit, Pleterski messaged the investor in June 2022: “Colin took money in from so many individuals that I never ended up seeing. Colin has over 2M in assets he can liquidate but he isn't.”
Court documents allege there is no evidence that the investor’s funds were ever transferred to Pleterski. “Murphy had engaged in a fraud on investors - parallel but distinct from the Pleterski Ponzi scheme,” a notice of action says.
Murphy's lawyer, Sukanta Saha, said it would be inappropriate for his client to speak with CTV News Toronto because the matter is before the court, but that Murphy “denies all allegations that have been put forward.”
“My client, Mr. Murphy, takes the position that he is just as much a victim of Mr. Pleterski's misdeeds as anyone else and this will be shown in the robust defence that will be put forward by Mr. Murphy in due course.”
Pleterski’s lawyer did not respond to requests from CTV News Toronto, but has previously stated that his client disputed much of what has been alleged in court and called the financial claims made by investors “wildly exaggerated.”
A LAVISH LIFESTYLE
An Ontario Superior Court froze Murphy’s assets in September 2022, after a separate investor came forward with similar allegations to Groot’s client.
Murphy’s social media posts, which are chronicled in court documents, continued to depict a lavish lifestyle – driving a Lamborghini in Las Vegas, accelerating to 250 km/h in a Mercedes Benz on unplowed roads, posing on a jet ski in Nassau and shooting a handgun at a range in Orono, Ont.
Yet Murphy simultaneously told the investor that he did not have any funds to pay them back – “a fact inconsistent with his lifestyle,” legal documents allege.
“Clearly there are assets that are not accounted for,” Groot said.
Colin Murphy driving a Lamborghini Huracan on Oct. 4, 2022 (Instagram).
“The next available process to attempt to preserve assets and to attempt to preserve evidence, most importantly in the form of data, is to apply for a private search order.”
Groot obtained a civil search warrant from Justice H.K. O’Connell on Jan. 12, 2023 for the residence Murphy was staying at in Whitby, Ont., court documents show.
Investigators executed the warrant a couple days later and found Murphy refused to surrender an iPhone 13. Digital forensic experts concluded that he had deleted data off of the device, which he later justified as “resetting” the phone because there were “intimate photos” on it.
As a result, Murphy was found in contempt of court, a subject that will be addressed at an upcoming sentencing. He’s also been ordered to turn over financial records dating back to 2020, including money received and transferred to Pleterski.
As the case progresses, Groot said he’s working to preserve all of the data and assets that he can trace along with connecting with other investors involved. “Anyone who has had dealings with Murphy, we certainly are interested in hearing from them,” Groot said.
Cape Breton University has more than doubled in size by enrolling thousands of international students, and critics say the campus and community weren't ready. Watch the documentary 'Cash Cow' on CTV W5, Saturday at 7 p.m.
A new Canadian study of 4.8 million people says a daily alcoholic drink isn't likely to send anyone to an early grave, nor will it offer any of the health benefits touted by previous studies, even if it is organic red wine.
W5 profiles the man who makes the sounds for breaking bones and squealing tires in Hollywood’s biggest films; and he does it from a small town in Ontario. Watch 'Sound Farms' at 7 p.m. on CTV W5.
Statistics Canada has released its new report about the Canadians level of confidence in Canada’s institutions, finding that recent immigrants are more likely to express confidence in the media and parliament.
In a choice forced upon them by the Canadian government, four mothers have made the agonizing decision to forfeit an opportunity to repatriate their children from open air prisons in northeast Syria.
Lawyers representing Toronto MP Han Dong served Global News with a libel notice on Friday over reports that alleged he spoke to a Chinese diplomat in February 2021 about delaying the release of the two Michaels, and that he was a 'witting affiliate' of Chinese interference networks – allegations that Dong denies.
A recent report from Royal LePage is predicting a drop in prices for Canadian cabins and cottages this year as demand softens from economic uncertainty and low housing stock.
Akwesasne Mohawk Police say they are working with Immigration Canada and the U.S. Department of Homeland Security to confirm the identities of the eight migrants whose bodies were pulled from the St. Lawrence River this week.
April Fools' Day -- better known as poisson d'Avril in Quebec -- is upon us. Some of the province's familiar faces got into the spirit Saturday with a few light-hearted social media pranks.
A new Canadian study of 4.8 million people says a daily alcoholic drink isn't likely to send anyone to an early grave, nor will it offer any of the health benefits touted by previous studies, even if it is organic red wine.
London police responded to Dundas Street, just west of William Street around 6:30 p.m. Friday evening for a reported shooting. According to police, one person is in custody.
Cape Breton University has more than doubled in size by enrolling thousands of international students, and critics say the campus and community weren't ready. Watch the documentary 'Cash Cow' on CTV W5, Saturday at 7 p.m.
A northern Ontario man has been banned from licenced hunting and fined $5,000 after pleading guilty to having more than six times the legal limit of grouse and obstructing conservation officers.
When police arrived to a collision on Degge Street, they said they spoke to the driver at fault for the crash and believed him to be driving while impaired by alcohol.
Tourism Barrie brought a report from a consulting firm to council, recommending upgrades to the arena, including additional seats, modern concessions, and an open grand entrance on the building's north side. The proposed renovations would cost approximately $40 million but could bring significant economic benefits to the city.
Sigfrid Stahn walked out of the Barrie courthouse Friday a remorseful man one day after a jury found him guilty of impaired driving, causing a collision on Highway 12 in July 2020 that killed a 77-year-old Midland man.
After the RCMP commissioner admitted he didn't read the Mass Casualty Commission’s final recommendations, family members of those killed in the April 2020 tragedy say they have doubts the force will change.
Cape Breton University has more than doubled in size by enrolling thousands of international students, and critics say the campus and community weren't ready. Watch the documentary 'Cash Cow' on CTV W5, Saturday at 7 p.m.
A doctor named in a lawsuit after a Nova Scotia woman died in hospital following a long wait to see a physician has denied allegations from the family that he failed in his duties.
The United Conservative Party (UCP) of Alberta announced Saturday that Rajan Sawhney will run as a UCP candidate for Calgary North-West after announcing in February that she wouldn't be running for re-election in Calgary North-East.
Officials in Vancouver said they plan to meet with the artist and volunteers who are keeping vigil on a children's shoe memorial on the steps of the city's art gallery in an effort to end the tribute to children who didn't return from residential schools.
Colin Murphy, one of Aiden Pleterski’s “originators,” is seen in a photo posted on Instagram (tspvisuals).
Colin Murphy takes a photo at Upper Canada Mall in Newmarket, Ont. (Instagram). 
Colin Murphy driving a Lamborghini Huracan on Oct. 4, 2022 (Instagram). 
