When investment guru Robert Mander was found dead in his home in Flamborough, Ont., in March, his clients started wondering what had happened to more than $40-million they entrusted him to manage.
The investors went to court and had a receiver appointed to try to track down their cash. Now a report filed by the receiver, RSM Richter Inc., suggests that Mr. Mander used some of their money to indulge in luxuries, including buying 24 expensive watches, six high-end guitars, nine pricey pens and filling his home and office with mahogany bookshelves, leather couches, an oriental rug, a 72-inch plasma television and some bizarre knick-knacks like three "multi-coloured frogs."
Mr. Mander had been a high-flying investment adviser for about seven years, luring investors with the promise to deliver annual returns of up to 25 per cent. When some investors started asking for their money back last fall, he scrambled to come up with excuses for not paying. By the time he was found dead on March 17, he had less than $30,000 in the bank and nearly $150,000 on two MasterCards and a line of credit.
The receiver hasn't recovered much for investors yet. So far, one property Mr. Mander owned has been sold for $2.8-million, but only $639,000 will be available to creditors once the mortgage is paid. The receiver is also trying to secure investments in several brokerage accounts, but the total is estimated at just $65,000, according to court filings.
That leaves the contents of Mr. Mander's home and offices, one of which served as an art gallery. The receiver has hired Asset Engineering Corp. to auction off about 300 items. The list of items filed in court shows Mr. Mander had expensive tastes.
He owned a stunning array of watches, some of which cost more than $30,000 apiece. They include a Fabergé Agathon 18-karat rose-gold watch with a black alligator strap, five pieces made by famed Swiss watch maker Chopard, including a limited edition Prince of Wales white gold chronometer watch. There are also six special edition Rolex watches, including two Cosmograph Daytonas, made famous by actor Paul Newman.
Mr. Mander also had a penchant for expensive pens, the list indicates. He owned five special edition Dunhills, such as the "Bulldog" and "Sidecar Revolette," some of which sell for more than $600. The list also includes three special MontBlanc pens, one of them a "Starwalker platinum-plated black resin fountain pen." Mr. Mander liked guitars as well, and owned a Gibson Les Paul and a Hamer Newport. He also had five pairs of platinum and sterling silver cufflinks, an 18-karat gold ring, eight cameras and lenses, and two pairs of Lindberg sunglasses, which retail for more than $400. He decorated his office with works by Canadian artists such as Betty Nelson Daniel and Raphael Montpetit.
All of the items, along with a 2010 Jaguar, three Fabergé eggs and a Skidoo, are expected to be auctioned next month. Meanwhile, the receiver is still investigating Mr. Mander's books and records.