Toronto Businessman Accused of Running Multi-Million Dollar Real Estate Scheme

A Toronto businessman, Craig Dunkerley, is facing allegations of orchestrating a fraudulent real estate investment scheme that has left dozens of investors facing significant financial losses. The Ontario Securities Commission (OSC) is investigating claims that Dunkerley and his companies may have engaged in fraudulent conduct, potentially trading securities without proper registration and misleading investors about the risks involved.

The Allegations

The case centers around investments solicited through BG Wealth Group, a company founded by Dunkerley. Investors, including Cyndy Hadley, were promised high returns – as high as 16% annually – through investments in properties, initially in Detroit and later in Owen Sound, Ontario. Hadley, along with her late husband, invested approximately $740,000, drawn from the sale of their home and RRSP accounts, believing they were building a secure retirement fund. However, these returns ceased in late 2023, and investors soon discovered that their principal was at risk.

According to a report by the Toronto Star, the OSC alleges that Dunkerley may have traded securities without the necessary dealer registration and failed to provide required prospectuses. The commission has collected evidence from 95 investors, revealing at least $5.5 million invested in a private lending program and $8 million in a growth fund.

A Lavish Lifestyle and Mounting Debt

Investors describe Dunkerley as charming and persuasive, building relationships with them and presenting a picture of successful real estate ventures. Hadley recounts being invited to a $6 million mansion purchased by Dunkerley and his business partner, Claudia Harvey, where she observed a lavish lifestyle funded, she believes, by investor money.

However, court documents reveal a different reality. Dig It Apparel, a garden glove brand co-owned by Harvey, filed for bankruptcy in April 2024. Lenders, including Royal Bank of Canada and Bank of Montreal, filed lawsuits against Dunkerley and Harvey for loan defaults, ultimately leading to the loss of their Etobicoke mansion to a mortgage lender. A Star analysis found that the Owen Sound properties marketed to investors carried multiple mortgages, some totaling four times the original purchase price.

Legal Action and Investigation

In January 2025, Hadley and approximately 20 other investors filed a joint lawsuit alleging a Ponzi scheme, claiming that funds were misappropriated from real estate projects. Dunkerley’s whereabouts are currently unknown, and attempts to serve him with the lawsuit have been unsuccessful. Toronto Police are also investigating a 2025 report involving BG Wealth Group.

The OSC issued a warning letter to Dunkerley in 2019 regarding potential violations of securities laws, but the warning was not made public at the time. The OSC is currently seeking an extension of a temporary order ceasing operations of BG entities to continue its investigation, citing deficient productions of documents and commingling of funds within the company’s bank accounts.

Investor Impact

The financial consequences for investors have been devastating. Joanne Gullusci, a retired CIBC employee, invested $400,000 and now faces financial hardship, potentially needing to take out a reverse mortgage on her home. Cyndy Hadley was forced to sell her home and move into her son’s basement after losing her investment and the subsequent monthly returns that supported her living expenses.

Dunkerley, in a statement to the Toronto Star, denied misusing investor funds and attributed the cessation of payments to economic conditions and rising interest rates. He maintains that the assets remain sufficient to cover obligations. Harvey, through her lawyer, denies any wrongdoing and claims she also suffered losses from her investments in BG Wealth Group.

Key Takeaways

• Craig Dunkerley and BG Wealth Group are under investigation by the OSC for alleged fraudulent investment practices.
• Investors have lost millions of dollars, with claims exceeding $13.5 million.
• The case highlights the risks associated with unregistered investments and the importance of due diligence.
• The OSC faced criticism for not publicly disclosing a warning letter issued to Dunkerley in 2019.

This case serves as a stark reminder of the potential for investment fraud and the demand for investors to exercise caution and seek professional advice before committing funds.