Episode #6: Did Paul Maines Solicit an Investment from Paul Jenkins?
The real story behind the CMT/764 lawsuit will only be fully known when the truth about what happened during a few fateful days in September, 2012 is revealed – when the first and only Securities Investigation (file #001) to EVER have been conducted in PEI was launched. There’s an incredibly-important story to be told about how the Securities Investigation against Paul Maines and CMT was shut-down immediately before Maine’s lawyer – flown in from Toronto – was about to cross-examine Dowling and other witnesses, but I’ll leave that for another day. This episode (and the previous two) are intimately tied to those events.
This final episode deals with additional false allegations made by Dowling alleging Paul Maines solicited investments for CMT/FMT. In Episode #5, I mentioned I would deal with Dowling’s allegation that Maines solicited Paul Jenkins to invest in CMT/FMT, so let’s start there.
Dowling’s Claims about Paul Jenkin’s Investment in CMT/FMT
Dowling interviewed Paul Jenkins in the course of his 2012/13 Securities Investigation and made sworn statements in his affidavit about that encounter:
Para 25. In September and October 2012 I [Dowling] met with Paul Jenkins. During this meeting he advised me and I believe that A. In July 2010, a cousin of his, Garth Jenkins, introduced him to Mr. Maines.
That much is true. But in 25(a) Dowling says: “This introduction occurred at Mr. Maine’s Home, 140 Plug Street, Malpeque, Prince Edward Island.”
That’s not true – that introductory meeting happened in late July at Smitty’s in Charlottetown. As Jenkins clarifies in his Voluntary Sworn Statement given in 2013:
“He [his cousin Garth Jenkins] introduced me to Paul Maines in July of that year — I think it was late July – at Smitty’s one morning. And Paul Maines, you know, gave us a rough outlook of what transactions, you know, financial transactions are and, and would look like, and some opportunities of which, you know, it was totally foreign to me.”
Maines was discussing his business – not soliciting an investment – and Jenkins made that clear. Yet Dowling goes on in the next subparagraph of #25 of his affidavit to say that when Garth introduced Paul Jenkins to Paul Maines in July, 2010, Maines approached him about investing:
“25(d) While at 140 Plug Street, he [Paul Jenkins] was approached by Mr. Maines about investing in a business venture.”
Again, that never happened. That discussion happened exclusively between Garth and Paul Jenkins before Paul Jenkins had even heard of Paul Maines.
What Really Happened
CMT’s Factum provided two quotes from “Exhibit 11”. The first was from a July 14, 2010 email to Peter Marshall – the person handling the CMT/FMT investment account – wherein Garth Jenkins mentions his cousin Paul Jenkins to Marshall as another interested investor:
“Also, I have another interested investor in the round (my cousin) who would like to see the material. He actually may have a few targetco shells at his fingertips.”
Two days later, (July 16, 2010) Garth Jenkins emailed Paul Jenkins to inform him that Raymond James Ltd. (brokerage firm) was handling the CMT/FMT investments:
“See responses from Peter Marshall, VP at Raymond James. Peter is Handling the financial raise for CMT. Paul Maines is the VP of Bus Dev. He is my future wife’s cousin and he lives in PEI in Malpeque. You can meet him next week if you wish.”
Paul Jenkins not only became aware of the investment opportunity from Garth Jenkins, it was his faith in Garth Jenkin’s business smarts that made him decide to invest in the same venture in which Garth had to decided to invest – something he speaks about in a number of places throughout his sworn Statement and explicitly confirmed in response to a leading question he was asked about what motivated him to invest in CMT/FMT:
Q. Okay. And it would have been your discussions with Mr. Maines that would have motivated you to invest. Is that a fair statement? Or was it other things?
A. Well, it would have been my faith in, in my cousin
According to the documentation submitted to Judge Campbell, all communications and administration concerning CMT/FMT’s investment opportunity were handled by Peter Marshall, (V-P of Raymond James Ltd.) and CMT/FMT’s corporate lawyer (Gary Jessop, CMT lawyer at Blake’s & Cassels).
Despite providing no credible supporting evidence, Dowling swore numerous serious and false statements alleging activity (e.g., Paul Maines soliciting investors) of which Dowling had no direct personal knowledge but attributed to others – and repeatedly misrepresented what he allegedly was told by other individuals who actually had direct knowledge of those activities and events.
Campbell relies on Dowlings false claims; however, as was pointed out in the previous post, Dowling did not file any documents in the Motion Hearing supporting the “hearsay” claims he made in his 2013 affidavit.
On the other hand, the sworn evidence I have provided in these last three episodes provided by those individuals with direct knowledge of the events and activities which Dowling discusses – especially his claims that Maines solicited investors – was before Campbell and was clearly ignored, otherwise Campbell would not have drawn the following conclusion in his decision:
” 484 Through the course of the investigation, Dowling obtained various emails and other documentation confirming that Maines was soliciting investments.”