Bogdan Stetic, HBSc, CIM, CFP

10/27/2025

In continuing with my fraud and investment scams; today I will talk about one that isn't an actual scam but it is/was sold in a very misleading manner.

The Syndicated Mortgage:

Years ago, a client brought me a brochure for an investment he’d made into a “mortgage.”

It was RRSP eligible. Secured against real estate. And the return was guaranteed and much higher than anything a bank could offer.

To him, the logic felt solid. If the mortgage wasn’t paid, the property could be sold and the money recovered. After all, real estate doesn’t go down. Right?

Except this wasn't a property but a development, and the developer went bankrupt.

He knew he was investing in a mortgage. The paperwork was in order. It was legitimate.

But only when things fell apart, is when he found out where he really stood.

Payment order:

1)The real estate agent liquidating the project.

2)Then the lawyers for the bank that are handling the liquidation.

3)Then the bank itself.

4)Then other secured lenders - which he was a part of.

However, by then, there was nothing left. He had lost his entire investment, and a part of his retirement fund.

These are not nearly as popular as they were before, but I did across a new version of the same pitch recently. Same promise, different brand.

“7% rental return.” RRSP eligible. Guaranteed payout.

However, the return was based on the purchase price, not any rental or lease income. It was a developer incentive, not cash flow. And the guarantee? Only as strong as the company behind it.

These investments are not inherently a scam. But it’s also not what people think it is.

So remember:

Secured doesn’t mean safe.

RRSP eligible doesn’t mean conservative.

And "Guaranteed" doesn’t always mean guaranteed.

In the end, this is a legitimate investment and there’s an entire industry built around private lending and collateralized loans. Some are managed through funds, while others are offered directly.

The risk profile varies depending on the structure, who’s behind it, and what protections are in place. Good private investments do exist. The key is understanding what you’re getting into, and most importantly where you stand when things go sideways.

10/20/2025

The scams keep getting smarter, but they all start the same way: with trust.

In continuing with my posts about financial fraud, one recent case in Canada stood out, not because it was complicated, but because it was so familiar.

Remember the "Crypto King"? Well if you don't, he is a 25-year-old from Ontario who called himself the “Crypto King” and who convinced dozens of people that he could make them big returns, through cryptocurrency trading.

He looked successful, with nice cars, fancy watches, rented mansions, and a confident social media presence.

Over time, he raised more than $40 million. Investigators later found that less than two percent was ever invested. The rest funded the image that made others believe the story.

I see this kind of situation more often than I’d like, when the appearance of success replaces the substance behind it.

In fact, I recently read about a company that rents corporate jets, and their most frequent booking are not to people who need to travel, but "influencers" who want to look like they’ve already “made it.” It’s just another reminder that the optics of wealth can be more profitable than wealth itself.

Furthermore, just last month, authorities announced a global crackdown that froze over $300 million tied to online crypto scams.

Crypto itself isn’t a fraud, but the space attracts fraudsters who thrive on hype, excitement, and misplaced trust.

The real risk is when emotion replaces due diligence, and quick promises replace proper verification.

Real opportunity never needs urgency.

The moment someone rushes you, stop and re-evaluate.

Has anyone ever been pitched something that didn’t sit right, or heard of situations like this? I would love to hear about it.

The crypto industry is fighting back against scams, as it aims to prevent fraudsters from cashing out.

10/14/2025

In returning to my posts about financial scams and fraud, I want to highlight a tragic story from Toronto last year that was a painful reminder that fraud does not only cost money, it can cost lives.

If you are not aware, of the tragic story, here is the brief summary:

An investor put more than a million dollars into what was presented as a safe real estate opportunity. It was set up as a syndicated mortgage, where money is pooled with other investors, said to be secured by property, and promoted as offering steady, high returns.

The pitch came across as safe and convincing. At first, there was nothing that made it seem suspicious.

But the money was not being used as promised. Over time, the returns did not come. Hope turned into frustration. Frustration turned into despair. The pressure became too much, and the story ended in tragedy with a murder su***de that left several lives lost and families shattered.

If you are not familiar with the case, I encourage you to read more about it:

AP News coverage: https://apnews.com/article/canada-shooting-toronto-defrauded-b5b378e76f4b7993a6ab3042f8dcec04

This was truly a tragedy that shattered several families. We need to know about these things so that we ourselves do not fall into these traps.

The Lessons

Words like real estate and mortgage do not always mean safe.

Promises of high returns with no risk are almost always fraud, or at least misleading.

Verification is critical. Always do your own due diligence. Check whether the investment is registered with a provincial securities regulator such as the OSC, or under FSRA for mortgage-related products, and confirm who owns the property.

The takeaway: Due diligence is critical with these types of investments. Even if the opportunity is legitimate, you need to understand how the deal works and where your money is at risk; and there are ALWAYS risks. So, if you cannot get clear answers to those questions, it is safer to pause until you do.

Finally, I if you have been caught in a scam like this, know that you are definitely not alone. They exist and are much more common than you believe.

10/06/2025

Recently, I’ve had several business owners bring up a retirement “strategy” that I thought was worth clarifying.

The idea goes like this: a corporation buys a permanent life insurance policy on the owner. Over time, the cash surrender value grows through dividends. Then, in retirement, the owner borrows against the policy or its cash value, believing this creates tax free income.

Here’s the issue: it is never tax free income.

When the corporation owns the policy, the cash value belongs to the corporation, and not the person whose life is being insured. So, if the shareholder wants to use it personally, it must be paid out as salary, bonus, or dividend, and all of those are taxable.

Ok, even if it is taxable, is this a good strategy? The answer is "maybe". This depends on several factors and risks involved:

• Personal tax rate. How much the owner actually keeps depends on their personal tax bracket.

• Borrowing costs. Although policies can be borrowed against, like a reverse mortgage, these loans are not free, and the interest will erode the final death benefit.

• Policy performance. Dividends on participating policies are not guaranteed, and returns on UL policies are market dependent. So the amount you can borrow in the future is not guaranteed.

In summary, while these arrangements can be set up, they are not simple, not tax free, and come with moving parts that need careful evaluation.

Where permanent life insurance truly adds value is in protecting the business and loved ones if the owner passes away. The death benefit is received tax free by the corporation and is added to the Capital Dividend Account, which allows most, if not all, of it to be paid out to shareholders tax free. That cash can fund a buy sell agreement, cover taxes, equalize inheritances, or help transfer wealth to the next generation. This should always be the primary reason for purchasing a permanent policy, since there are often more efficient ways to build a retirement nest egg with corporate assets.

09/29/2025

In the spirit of my last post about a scam call, here’s another story.

I was introduced to a recently retired business owner. He was smart and successful, and had built meaningful wealth over decades. He reached out because he was worried he had been caught in a scam. The offer he was presented promised the potential of very high returns with very little risk. So he invested a reasonable sum to start. After a short while, his account balance was climbing quickly. Excited by the gains, he asked to take some profits off the table. That is when he was told he first had to pay a substantial commission to access his own money. The red flags went up, and instead of sending more, he called me.

He was not naïve. He was experienced and careful. But like many others, he was drawn in by the perfect pitch, a story of high returns with no risk, delivered as if it were an inside secret from a former analyst who had left a big investment firm to make more money.

Back at my office, I did more digging. The only reference I could find was a single article on a questionable “news” site designed to make the company look credible. It even claimed the backing of a major Canadian financial institution.

That is when I could confirm to him that none of it was real. It is very likely his money is now gone. The only silver lining is that we stopped him from paying the so-called commission, which he would never have received back, along with his original investment.

It brings me to a key point: anyone can claim credibility, but credibility must be verifiable. If someone says they are backed by an institution, you should be able to verify that yourself. For example, I'm accountable to five different institutions and regulatory bodies:

CIRO (formerly IIROC) for my investment advice and licensing

FSRA for insurance oversight

FP Canada for CFP conduct standards

Canadian Securities Institute for my CIM designation

Exit Planning Institute for my CEPA designation

Each carries its own rules and ethics, but together their purpose is the same: to protect clients. I welcome that oversight because it means everything I say must be backed, proven, and never misleading. It also allows individuals to verify me independently.

Takeaways:

• Be skeptical of promises of high returns with little or no risk.

• Always verify. Do not just trust a logo or a claim.

• Ask: Who backs or supports this person, and can I confirm it myself?

• If an investment opportunity falls under a regulatory body, your have greater protections and more avenues for recourse, if you're misled.

In the end, If you have ever been caught in a scam like this, know that you are not alone. These schemes are built to fool even smart and experienced people. What matters is what you do next.

If, on the other hand, you come across an investment that raises questions, do not hesitate to reach out to me for a second opinion. I would rather get the call before hand than after the damage is done.

PS. This image was created by AI. Now, imagine how easy it will be to create fake accounts, fake logos and fake news stories.

09/22/2025

Last month, I got a call that almost anyone could have fallen for.

The number on my phone matched my bank.

The caller knew my name, and my bank.

He sounded calm, professional, and helpful.

In other words, it checked all the boxes.

But something felt off. So I started asking questions.

How could fraud happen if I have two-factor authentication on every login?

He said my password had been “stolen.” That made no sense.

Why didn’t I see the transaction myself? Every purchase over $1 triggers an alert. He said the fraud team “intercepted” it. Impossible because those alerts are automated.

Why wasn’t it showing in my online banking? He claimed they had caught it and removed it. That may sound possible, but transactions do not just vanish.

Then he asked for my credit card number “to verify.” That was enough. I hung up, called my bank directly, and confirmed there was no fraud at all. Just a very convincing scam.

Takeaways:

• Use two-factor authentication everywhere

• Set up $1 alerts to track every transaction

• Stay calm, ask questions, and look for slips

• Remember: phone numbers can be spoofed

And one last note: this is also where working with an advisor helps. I know my clients, and my clients know me. They do not get calls from a random call centre pretending to act on my behalf.

08/27/2025

What if your child doesn’t use their RESP? Many parents worry the money will be trapped but that’s not the case. Post secondary covers more than just university, including college, trade schools, and even programs abroad. And if funds are left over, they can be transferred to a sibling, rolled into an RRSP, or moved into a disability savings plan. The real risk isn’t being stuck with RESP money, it’s missing out on the opportunities these plans create.

RESPs often fall short of funding a child’s full education, but sometimes an account holder ends up with unused education savings. Here’s what to do if you have an excess or shortfall in RESP funds.

08/25/2025

The biggest retirement risk isn’t running out of money. It’s never spending the money you worked so hard for.

Research shows many retirees underspend as expenses decline with age, but fear keeps them from enjoying the life they built. I see the same with my clients. One thing they value most in their plan is the clarity to know what they can spend with confidence today while still protecting tomorrow.

Which fear weighs more on you, overspending or underspending?

Financial planning — ideally on a spreadsheet — is essential for making your retirement pot last.

07/29/2025

The article makes several valid points, and the general concept is sound. But, to be fair, it misses a few key components for a true apples-to-apples comparison. Real estate allows for significant leverage. It's one reason people are drawn to it, but that can magnify risk, especially in a downturn. The article includes reinvested dividends for stocks but doesn’t factor in rental income. Real estate also comes with taxes and maintenance, as well as a significantly more involvement from the owner, and unlike stocks, you can’t sell off a piece when you need cash. Relying solely on real estate can leave you trapped. Unfortunately, it takes a downturn like one now to demonstrate that.

Let’s finally dispense with the idea that housing is a foolproof financial asset.

07/16/2025

When starting a business, you’ve got big ideas and dreams, and the drive to do the work on your own terms. There’s a long list of things to do and you are doing it all.

07/14/2025

I often hear talk about returns, and beating the market. But the real question is: At what risk?

Investing isn’t just about chasing performance. It’s about aligning with your risk tolerance and minimizing tax over time.

Two portfolios with the same return can carry very different risk, and lead to very different after-tax outcomes. Over time, that gap can cost thousands, or more, if a high-risk bet goes wrong. There’s no reset button.

That’s why the wealthiest are more likely to work with advisors. It’s not just what you make, it’s what you keep.

If you're feeling concerned with how your portfolio is set up, let’s talk. A second set of eyes never hurts.

The next stage requires more than just a new strategy; it demands a new mindset.

06/26/2025

Investors can aim for portfolios that deliver more gains in good times than losses in bad.