Post says Goudas claims trusting RBC led to bankruptcy 

2017-02-15 09:12 ET - In the News 

The Financial Post reports in its Wednesday edition that the man who founded Toronto's Goudas Food Products and Investments Ltd in 1969 claims he lost his business to a fraud because he trusted Royal Bank of Canada.
The Post's Peter Kuitenbrouwer writes that Peter Spyros Goudas, an immigrant from Greece, says in court documents that his company, whose products were sold under the name "Mr. Goudas," Goudas Food Products and Investments Ltd went bankrupt in 2014 after Royal Bank encouraged him to trust John Simmonds, and because the bank failed to do its due diligence before it loaned millions of dollars to Mr. Simmonds.

Police have arrested Mr. Simmonds three times on fraud charges -- twice last year and again on Feb. 3. Police say the Goudas Food Products and Investments Ltd fraud involves dozens of victims who lost $30-million.

Peter Goudas says in an affidavit filed in the bankruptcy proceedings that he met Mr. Simmonds in 2014, and that he persuaded the plaintiff that he would be able to expand Goudas Food Products and Investments Ltd into a billion-dollar business.

The offer was conditional on approval from Royal Bank.
The bank told him he could trust Mr. Simmonds.

"My contact at RBC, Donna O'Reilly, advised me that RBC had investigated John Simmonds, that he was a highly regarded businessman," Peter Goudas claims.

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