Former Financial Adviser Appears In Court

AS REPORTED IN THE WATERLOO REGION RECORD

July 31, 2012 00:07:00

Rose Simone, Record staff

KITCHENER — Sitting quietly behind a glass enclosure in a Kitchener courtroom on Monday, the dynamic image of former financial adviser Daniel P. Reeve had disappeared.

Wearing a goatee and blue-checkered shirt, he bore little resemblance to the clean-shaven businessman in expensive suits who ran the Jakobstettel Inn in St. Jacobs and the Millionaire in You Wealth Institute in Waterloo a few years ago.

Reeve, 52, was remanded in custody to give him time to speak to a lawyer. He’s been arrested and charged in one of the biggest fraud cases in Waterloo Region’s history.

According to the Waterloo Regional Police fraud branch, 175 potential victims of the fraud case were convinced to contribute to private and public investments between 2006 and 2009. Total losses are estimated at nearly $30 million.

Reeve, a former Elora-area resident and businessman now living in Collingwood, has been charged with defrauding the public, and with theft over $5,000. The case is ongoing and there could be other arrests, police say.

During his appearance on Monday, the court issued a ban on the publication of the court proceedings.

His disabled elderly mother was in the courtroom to watch the proceedings.

One of the people who invested money with Reeve, 74-year-old Mike Ferguson of Belwood, just outside Guelph, was also in the courtroom. Speaking outside court, Ferguson said he lost about $200,000 of his retirement savings in 2008.

He said Reeve had been a trusted financial adviser for a number of years. When he was presented with an opportunity to invest in the Jakobstettel Inn in St. Jacobs, he was convinced. “He was a guy we thought we could trust.”

Now, Ferguson’s age and health make it impossible to recoup his losses. “I have a heart problem. Otherwise, I would have gone back to work,” he said.

Reeve’s next court appearance, which will be by video because Reeve is being held at the Maplehurst Detention Centre in Milton, is scheduled for Friday afternoon.

rsimone@therecord.com

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The Wedding Nightmare Ends: Jakobstettel Inn is Sold

By Rose Simone, Record staff

ST. JACOBS The Jakobstettel Inn has been sold to a numbered company headed by Jim McConnell, president of Kitchener trucking company BLM Transportation Group. The inn was sold for $1.45 million in a cash deal on July 16, according to land registry documents.

McConnell said Friday he is not yet prepared to make a formal statement about why he was interested in the inn on Isabella Street in St. Jacobs, and what he intends to do with it. However, a note posted on the Jakobstettel website that says: “The Inn will be opening under new management in August with ten beautiful, distinctly furnished rooms for $199 to $399 per night.”

The two-hectare property includes a gated three-storey Victorian home with 10 guest suites, a heated inground pool with poolside cabana bar and grill, tennis courts and gardens, as well as meeting room facilities.

BLM was founded in 1984 with one truck and has grown into a company with 170 tractors and 500 trailers. It transports electronics, office furniture, general merchandise and foodstuffs throughout Canada, the United States and Mexico.

The Jakobstettel Inn was one of the businesses run by Daniel P. Reeve, whose troubled business ventures are now the subject of a criminal investigation by the Waterloo Regional Police fraud branch.

The fraud branch has received about 110 complaints and is looking into alleged investment losses of about $19 million, according to Sgt. Rob Zensner of the police fraud division. The investments are related to various businesses that were run by Reeve, including DPR Financial Inc., which was based in Cambridge, the Millionaire Group and Millionaire in You Wealth Institute in Waterloo, as well as the Jakobstettel Inn.

When the inn closed this spring, couples who had booked weddings there lost their deposits and were left scrambling to find other locations for their weddings.

Reeve left the inn heavily in debt. Tuerr Holdings Inc., which had first and second mortgages on the property was owed $680,765 on the second mortgage and Brunen Holdings Inc was owed $350,000 on a third mortgage, according to court judgments.

When the inn was advertised in a power of sale process last month, Grant Hagerty of DTZ Barnicke in Waterloo-Wellington, the real estate company that was appointed as broker of record, said the purpose of the “sealed bid” auction process was to get the best possible offer in the shortest time frame.


IMO: What is taking the Waterloo Regional Police so long to make an arrest?

Wanted: New Owners for Jakobstettel Inn

by Rose Simone
RECORD STAFF

The Jakobstettel Inn has been put up for sale with the hopes of finding a new owner by the end of next month.The inn, on Isabella Street in St. Jacobs, was one of the businesses run by Daniel P. Reeve, whose troubled business ventures are now the subject of a review by the Waterloo Regional Police fraud branch.

Waterloo Regional Police Sgt. Rob Zensner said the police have now received about 100 complaints about alleged investment losses that total more than $16 million. That includes investments related to the Jakobstettel Inn, as well as other investments sold through companies headed by Reeve.

The inn closed earlier this spring. Many couples who had booked weddings there lost their deposits and had to scramble to find other locations for their weddings. The property is now going through a power-of-sale process as the mortgage holders try to recover their money.

Tuerr Holdings Inc., which had first and second mortgages on the property, is owed $680,765 on the second mortgage; Brunen Holdings Inc. is owed $350,000 on a third mortgage, according to court judgments.

The inn is being sold in a rapid "sealed bid" auction process that aims to get the property into the hands of a new owner as soon as possible, according to Grant Hagerty of DTZ Barnicke in Waterloo-Wellington, the real estate company appointed as broker of record.

Hagerty said details of the inn's sealed-bid auction have been distributed to about 200 operators of inns and bed and breakfast properties, as well as other businesses that might be interested.
The sealed-bid auction closes on June 30 at 4 p.m.

Hagerty said the intent is to get a "fast and furious" serious bid process going. He said the seller, Tuerr Holdings, wants to get the property into the hands of a suitable buyer and "see it go to a positive use."

The two-hectare property includes a gated three-storey Victorian home with 10 guest suites, a heated in-ground pool with poolside cabana bar and grill, tennis courts and gardens, as well as meeting room facilities.

Hagerty said there are many possibilities for the property. A prospective buyer might be interested in running it as an inn or as a bed and breakfast, he said. Companies also might be interested in it as a guest house and meeting facility, and someone might even eye it as a private residence, he said.

"We are looking at as diverse a range as possible," he said.

There is no starting price for the bids, but the advantage of having a sealed-bid process with a short time frame is that it encourages serious buyers to put their best offers forward. "If they don't, someone else will," Hagerty said. "What we are trying to do is create a competitive bid situation."

Tuerr Holdings hopes to select the best offer on July 3, and finalize the sale by the end of July.

Wedding Nightmare, The Continuing Saga

Locked out Millionaire in You owner also runs closed Jakobstettel Inn

The Waterloo headquarters for the Millionaire in You Wealth Institute, owned and run by Daniel P. Reeve, has been taken back by the landlord for nonpayment of rent.

Mat Wolf, a principal in Solowave Investments, the landlord for the property at 423 King St. N., said his company changed the locks and took back the premises on April 16, 2009.

Wolf said Solowave tried for weeks to meet with Reeve in an effort to make arrangements to get back rent owed, but each meeting was deferred by Reeve.

"We have had no success in actually meeting with him and we went through a process of making a formal demand for the rent arrears," Wolf said.

Reeve is also the president of Jakobstettel Properties Inc., which ran Jakobstettel Inn in St. Jacobs until its sudden closing in early April.

The inn property on Isabella Street is in power of sale proceedings because of defaults on the mortgage.

Reeve said on an April 17 the Record interview that he hopes to meet with the landlord of the Millionaire in You office to work out an arrangement to reopen the office.

He also said that he is "in the middle of refinancing" the business.

Reeve also used to head Daniel P. Reeve and Associates Financial Services Inc. and was the "chief visionary officer," for DPR Financial Inc. Now, both websites, www.dpr-financial.com. and www.themillionaire-inyou.com, are no longer functioning.

Another site, www.corporateangel.ca, was still functioning as of April 17. It advertises Reeve's books such as The Millionaire Mortgage, which claims to show people how to "turn your mortgage from being a burden of debt into a high-earning investment vehicle," and do so "without even changing your cash flow."

The Millionaire in You Wealth Institute offices in the 5,000-square-foot building opened in November 2007.

The office was to be a state-of-the-art "command centre" for the Millionaire Group and its affiliated businesses that encompassed Millionaire Travel, Millionaire Executive Services, Millionaire Mortgages and other businesses.

Waterloo Regional Police are now "reviewing" 35 complaints about products offered by various businesses headed by Reeve, Staff Sgt. Wally Hogg said in mid-April to the Record.

In an interview on April 8 with the Record, Reeve said his companies have done nothing wrong and he is confident that nothing further will come from the review.

Reeve also said at the time that the Jakobstettel Inn was closed because he was training new staff. He said he planned to reopen it on April 21.

Former suppliers to Reeve's businesses say they also are owed money. Daniel Tuka of The Essential Image in Waterloo said he is owed $5,000, plus material costs, on a project completed about eight months ago to produce promotional DVD discs for The Millionaire in You Wealth Institute.

People who paid deposits for weddings that were booked at the Jakobstettel Inn are also trying to get their money back.

The Wedding Nightmare Continues

Jakobstettel Inn can operate despite power-of-sale process.

The Jakobstettel Inn property in St. Jacobs is in the midst of a power-of-sale process because of defaults on mortgage payments, according to court documents.

The inn, located in an old mansion on Isabella Street in St. Jacobs, had been booked by couples who put down deposits for upcoming weddings. Those couples have been scrambling to make other arrangements since the inn suddenly closed down.

In a statement of claim served to Jakobstettel Properties Inc. on Jan. 22, the mortgage holder, Brunen Holdings Inc. of Kitchener, claimed it is owed almost $350,000 in principal and interest on a mortgage of $655,461 that was registered last June in the Waterloo Region land registry office.

Last month, the Ontario Superior Court of Justice granted Brunen Holdings the authority to issue a writ for possession of the property when it is sold, so that it can be turned over to a new owner.

Bruce Lackenbauer, a Brunen Holdings representative, said the court order basically allows the power-of-sale process to proceed. That process is now underway, but the writ of possession has not been taken out yet, he said.

"We don't want to get into possession until we have to, and the power-of-sale process requires appraisals and that sort of thing, so we are just in the process of that now," he said.

Lackenbauer said the power-of-sale process does not prevent the inn from operating. "We are not in any way preventing it from being open. That is up to the business, which is Jakobstettel Properties Inc.," he said.

The president of Jakobstettel Properties Inc., Daniel P. Reeve, has not returned calls since last week. His lawyer also has not returned calls.

Reeve said in an interview with the Record on April 8 that he was training staff and would reopen the inn on April 21, but couples who have weddings booked at the inn are still in a state of confusion about whether the property will be available to them. As of April 14, there was still no answering machine or voice mail system to pick up calls to the inn.

Wedding Nightmare, North of Waterloo

No answer at the inn! Horror of horrors! What's going on north of Waterloo, Ontario?

Couples who had wedding plans at the Jakobstettel Inn in St. Jacobs, Ontario, Canada are suddenly scrambling to find other venues after the inn located in an old mansion closed.

Meanwhile, Waterloo Regional Police are reviewing 22 complaints about investment products offered by various businesses headed by Jakobstettel Inn's owner, Daniel P. Reeve, who also runs DPR Financial Inc. and The Millionaire in You Wealth Institute on King Street in Waterloo.

Staff Sgt. Wally Hogg of the Waterloo Regional Police fraud squad said the review is taking place to see whether a full investigation is warranted.

In a telephone interview with The Record, Reeve denied that there were any problems.

"We have hid nothing . . . we have done nothing wrong," he said.

Reeve said he fully intends to reopen the Jakobstettel Inn for business on April 21 and is training new staff.

He promised to refund money owed couples who booked weddings, but are now worried and want to cancel the bookings.

"If anybody wants to cancel, they will get their deposit back. If they want to continue on, great . . . we will honour any commitment," Reeve said.

Some couples haven't heard anything from Reeve or anyone else from Jakobstettel Inn. Others have started a Facebook group in an effort to find out what is going on.

The inn was found locked with no information on its door. The phone was unanswered and there was no answering machine picking up messages.

Reeve said if anyone has any problems or questions, they should call his assistant at 519-883-8414 or 1-866-240-6737.