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Oakville dentist has March 31 OSC hearingContinued from page 1promised his money would continue to grow as advised that they were well aware of home just before a court hearing into the mat-long as he resisted the urge to withdraw it.the details of Manders businesster.Other investors continued to invest in 2009, affairs, that they had no concernsToday, as lawyers, receivers and investiga-according to the receivers report on the case.about his integrity or wherewithal,tors squabble over the case, questions are Radice, in a statement of claim filed in and that all of the monies obtainedbeing raised over whether the OSC should court in 2010, said he often dropped by from investors had been invested inhave warned investors to back off the scheme. Sbaraglias office to get a report on the invest-a legitimate fashion.The judge who appointed a receiver to wind ments. Radice said Sbaraglia typically told him Last December, an Ontario judgeup the schemes assets last December remarked they were doing well and there was no possi-put the Sparaglias' assets into receiv-it could very well be that the OSC could have bility of him losing his money.ership, including their $2.9 millionacted more promptly.According to the OSC, Sbaraglia and wife heritage home in Oakville. It wasAn OSC spokesperson told the Starthe Mandy were on a spending spree by this time, listed for sale recently.regulator did nothing wrong, saying that the racking up whopping credit card bills while One of the family members drawnreceiver in its investigation did not conclude dining at fine restaurants and using some of into the scheme was dentist Mandythe OSC failed to protect investors.the investor money to support a dental hygiene Sbaraglias brother, Rick McIntosh,The regulator has filed a series of allega-business owned by Mandy, a periodontist.the former head of the Toronto Policetions against Sbaraglia and his wife and sum-The OSC alleges that up to $7 million was Association. McIntosh and his wifemoned them to appear at a hearing March 31. never properly invested and remained in the formed a company they called R.S.The OSC has accused them of taking part in a Sbaraglias' accounts.Capital Growth and invested aboutfraudulent scheme and wants to ban them About $2 million was viewed as profits $1 million with the Sbaraglias.from trading securities. Sbaraglia declined an and used for personal expenses, the agency McIntosh said the Sbaraglias haveinterview request. In his own statement to claims. About $2.4 million was lost making done nothing wrong.the OSC, Sbaraglia describes himself as a vic-bad trades and $585,000 was used to buy open Youre barking up the wrongtim and criticizes the regulator for not warn-venture securities. Most of the remainder used tree, McIntosh said in an interview.ing him to beware of the Mander Ponzi for general business expenses.Youll never find two more honestscheme.Sbaraglia and his wife allegedly racked up a people than Peter and my sister.For Radice, it all started around the dentist $383,000 VISA bill, for personal expenses I think the bigger story, honestchair at his Woodbridge practice in 2005.including office renovations and restaurant to God, is how the system works,When the veteran family dentist needed a bills. Investor money also went to pay rent for McIntosh said. How the civil systemdental anesthesiologist to help treat a patient, a dental hygiene company owned by his wife.works in this kind of a system is justRadice called for Sbaraglia. Radice grew to By July 2009, the OSC had called in mindboggling. How does it maketrust him.Sbaraglia for an interview as part of their sense? Its supposed to be in place to / Q P F C [ 5 C V W T F C [ C O R O 5 W P F C [ R O R OOver time, according to Radice, Sbaraglia growing but secret probe into the Ponzi protect people.boasted that he and his wife had great prow-scheme.ess in trading private and public securities in The OSC, in its statement of allegations Toronto and New York. So much prowess, against Sbaraglia, said he misled them in his Radice recalled in a court action he started statements under oath by saying that the BEST HEARING AT BEST PRICESagainst his old dental colleague, that Sbaraglia investor money was not at risk.was planning to leave his own practice and Attempts were made to interview Sbaraglia become a full time investor.and his wife, but they declined.According to the OSC, Sbaraglia was, by You have no idea how badly I want to tell 2006, hooked up with Robert Mander, the mas-you my side, Sbaraglia said outside a hockey termind of a Ponzi scheme that would take at arena where he coaches a youth team. It will least $40 million from investors. A Ponzi take a week to tell you the story.scheme is a financial operation that pays In his November 2010 response to the OSC, returns to investors from money that new Sbaraglia and his lawyers say they were dupes investors contribute.of a malevolent career fraudster (Mander) Radice said he had no idea that Mander and who convinced them to become investors. The Sbaraglia were working together.Sbaraglias say they in turn got friends and The OSC, in a release last week, alleges both family to invest money. Even their 11-year-old men participated in a fraudulent scheme daughter was convinced to invest $1,000 in the through their company, C.O. Capital Growth. scheme.Radice would have liked to have known that Sbaraglia and his lawyers blame the OSC years ago.for conducting a deficient investigation into 60 DAY GUARANTEE WARRANTYWhen someone is under investigation you Mander.know what they should have done. They should In their response to the OSC, Sbaraglia said have frozen the assets and stopped the whole the regulator had evidence of Manders fraud process from tumbling and falling down, said as far back as 2008 and ignored it.HEARING Radice.Sbaraglia, who shared lawyers with Mander, Maybe I should have educated myself. blames the lawyers for not alerting him to the $Sometimes you have to take responsibility for scheme.AID SPECIAL295your actions. I really dropped the ball on this, As a result, he says, he and his company Radice said. He estimates 50 investors lost $50 continued to renew or enter into loan agree-million in the scheme, though the regulator ments with new investors. From October 2008 has pegged the amount at $40 million.to July 2009, after the OSC investigation had Between November 2006 and August 2008, begun, the company renewed or entered into Radice said he invested $617,000 in six differ-new loan agreements worth at least $7.4 mil-ent contributions to Sbaraglia, who promised a lion. Interest rates on those agreements range Hopedale Hearing Clinic25 per cent return on the dentists investments. from 8 to 25 per cent.Radice acknowledges he made a mistake in Sbaraglias former lawyers deny the allega-In Hopedale Mall, next to the CIBCtrusting his former colleague who, he said, tions, and say that the Sbaraglias repeatedly 1515 Rebecca Street, Unit 38, Oakville 905-827-73333 Thursday, March 3, 2011 OAKVILLE BEAVER www.insideHALTON.com