Court-Appointed Receiver Finds Massive Discrepancy in Cash Today Inc. Loan Records
A court-appointed receiver discovered only 256 active loans at Canadian consumer lender Cash Today Inc., despite the company previously reporting over 44,000 outstanding loans worth approximately $229 million. Creditors face potential claims exceeding $613 million as investigations reveal investor funds were routed to related companies rather than required separate accounts.
Edmonton-based consumer lender Cash Today Inc. is under intense scrutiny after a court-appointed receiver uncovered a stark discrepancy between the company’s reported loan portfolio and its actual records. MNP Ltd., appointed by the Court of King’s Bench of Alberta, found documentation for only 256 active loans valued at less than $900,000 when inspecting the company's offices. At the end of last year, Cash Today had reported more than 44,000 outstanding loans totaling approximately $229 million.
The collapse has left creditors facing significant potential losses. The receiver identified about 270 creditors and debenture holders with potential claims against Cash Today totaling more than $613 million. However, MNP cautioned that this figure may be overstated by at least $190 million. Uncertainty remains regarding the full extent of the company's assets and debts, as well as how investor funds were utilized.
Investigations into the firm's financial practices revealed that investor money was sent to bank accounts belonging to related companies instead of the separate bank accounts required by debt agreements. Furthermore, Cash Today told the receiver it held no bank accounts in its own name, a statement that was subsequently confirmed by bank records.
Founded in 2005, the company's operations are now in a state of limbo following major leadership changes. Grant Patterson, a key figure who controlled the firm, died during the week of Sept. 21. Cameron Schiffner resigned as a director effective Oct. 1. The situation has also raised regulatory concerns regarding Canada's lightly regulated lending industry.