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Banned Nanaimo investment advisor loses lawsuit for ex-girlfriendB次元官网网址檚 house

B.C. Supreme Court judge rules instead that Kenneth Edward Smith must pay back rent
14627279_web1_181204-NBU-SmithCartwrightLawsuit
Nanaimo courthouse (B次元官网网址 Bulletin file)

A Nanaimo man who tried to sue his ex-girlfriend for a share of her property has instead been ordered to pay her more than $20,000.

Former financial advisor Kenneth Edward Smith, banned for life from that profession, sued Tracy Dell Cartwright after their breakup, claiming he was entitled to a division of property, but a judge decided that in fact Smith owes Cartwright $23,250 in unpaid rent.

In his Nov. 26 ruling, B.C. Supreme Court Judge Robin Baird threw out SmithB次元官网网址檚 claim that he was in a B次元官网网址渕arriage-likeB次元官网网址 relationship with Cartwright and entitled to her house after their breakup. Cartwright denies it was B次元官网网址渕arriage like,B次元官网网址 and filed a counterclaim for rent owed.

The two met in 2007 after CartwrightB次元官网网址檚 friends recommended Smith for investment advice. The two became serious in August 2009, in B次元官网网址渕arriage-like statusB次元官网网址 in spring 2011 and in an on-and-off relationship until April 2015. In spring 2011, the two began renovations at CartwrightB次元官网网址檚 Nanaimo home. Smith, who was said to have carpentry experience, did numerous work, including a garage addition and renovations to different rooms. Cartwright paid for all materials while Smith didnB次元官网网址檛 expect to be paid, as it is part of their B次元官网网址渓ong-term future together,B次元官网网址 BairdB次元官网网址檚 ruling said.

Smith told the court he was diagnosed with cancer and wanted to end the relationship to spare Cartwright distress in late August 2012. Cartwright said she didnB次元官网网址檛 hear anything about this and claimed it was irreconcilable differences.

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In early 2013, Cartwright sought SmithB次元官网网址檚 advice about starting a small business and the relationship started up again that spring, according to BairdB次元官网网址檚 ruling.

Smith moved from his rented apartment in Lantzville into CartwrightB次元官网网址檚 home.

Cartwright testified about a verbal agreement for $1,000 monthly rent and said Smith paid nothing save for $500 when he first moved in. He didnB次元官网网址檛 assist with the mortgage, taxes or insurance.

Smith admitted to rent expectations, but said there wasnB次元官网网址檛 a set amount and some months he paid $1,000 and others $500. Baird said Smith was unable to present payment records to him.

Baird said the couple permanently broke up in April 2015. Cartwright moved to Vancouver in February 2016 and Smith was to rent the basement for $700 a month. He admitted to only paying $850 between Feb. 1, 2016 and Sept. 19, 2016, leading her to remove his possessions. She found the suite in bad condition with rotten food and B次元官网网址渄ecomposing clothing in the washing machine.B次元官网网址

Cartwright said they were only casually dating between 2009-12. She also believes Smith B次元官网网址渕isappropriatedB次元官网网址 money, with approximately $100,000 dwindling to $16,000. Baird said Smith was unable to explain how the money disappeared.

B次元官网网址淭he available evidence does not establish precisely where the money went,B次元官网网址 wrote Baird in his judgment. B次元官网网址淎t the very least, however, I found it decidedly odd that Mr. Smith, who was Ms. CartwrightB次元官网网址檚 investment advisor and now claims to be her spouse, was totally unable to explain how this large sum of Ms. CartwrightB次元官网网址檚 money was frittered away on his watch.B次元官网网址

The two partnered with two others for a chrome finishing business, Shine-On Chrome and Graphic Finishes Inc, with Smith the impetus behind the business, according to Baird. It failed, with everyone losing B次元官网网址渢ens of thousands of dollars.B次元官网网址 The Investment Industry Regulatory Organization of Canada subsequently fined Smith $125,000 and issued a lifetime ban from offering financial services for violating rules. Smith declared bankruptcy.

Cartwright also suspected Smith was unfaithful and interviewed associates and friends. Colleen Butler, who has known Smith 18 years, testified that Smith told her about affairs before, during and after the relationship. Butler said Smith went through women B次元官网网址渁lmost like popcorn,B次元官网网址 according to the judgment and was a B次元官网网址渢rue predatorB次元官网网址 using his financial advisor role to take advantage of vulnerable women for financial gain. The IIROC investigation found Smith had lost $10,000 Butler had given him to invest.

B次元官网网址淎ccording to Ms. Butler, Mr. Smith has promised to repay her from the proceeds of this claim against Ms. Cartwright,B次元官网网址 the judge wrote.

Cartwright said she is in dire straits financially due to SmithB次元官网网址檚 actions.

Baird dismissed SmithB次元官网网址檚 claim stating there must be B次元官网网址渕arriage-likeB次元官网网址 commitment and evidence of a couple living together two years continuously, and allowed CartwrightB次元官网网址檚 counterclaim, calculating an award of $23,250.

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Karl Yu

About the Author: Karl Yu

I joined Black Press in 2010 and cover education, court and RDN. I am a Ma Murray and CCNA award winner.
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