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However, Simon was unable to sell any more units by the closing date of April 30, 1997 and in May 1997 the owner of Lord Nelson Apartments sold the building to another purchaser.
Simon, however, had spent the investors money and could not return it to him.
Not put off, Simon got involved in a similar scheme with the Ashnola Apartments.
Again he found a couple to invest in the building, "and these funds were used by (Simon) partially to cover business expenses and partially to cover the personal expenses of himself and his wife," states the appeal decision.
The saga leading up to fraud convictions began in February 1997 when the Simons leased space in the Oceanic Building Centre in Vancouver.
There they met and hired an administrative assistant.
During a social event the Simons met some of the assistants relatives from Prince George. They were curious to know how the Simons were living so well considering sales of the Oceanic were going so poorly.
"(The Simons) advised the visitors that they were able to make investment through the German Consulate which yielded 10 to 12 per cent per month," states the decision.
"(Simon) explained that his wife made this claim at first, only with the idea of saving face, of providing an explanation for their outward appearance of wealth, not wishing to admit to people that they had just met that in fact they were quite strapped financially."
However, the visitors were intrigued by the scheme and implied that they too might be interested in investing.
With only a follow-up call from Sybille the Prince George residents handed over $50,000 in August 1997 and a further $20,000 in October.
The Simons even visited them in Prince George and "became closer friends."
Meanwhile the Simons also prevailed on their administrative assistant to invest in the German Consulate scheme as well as $25,000 in Ashnola Apartments, which the couple owned no interests in during June 1997.
"(The Simons) confirmed that they used the money received from (the assistant and the Prince George residents) to pay back funds owed to other investors, as well as to cover their own bills and expenses," states the appeal decision.
By January 1998 the administrative assistant and her relatives became suspicious. In addition the Simons failed to pay her wages.
She filed a complaint with the B.C. Securities Commission and also with the police.