JD Euroway Bancorp & Trust, Bankruptcy

JD Euroway Bancorp & Trust, a Delaware-incorporated trust based in Montréal, Québec, was placed into bankruptcy on May 28 on application by Brothers International (UK) Limited, owed approximately $1.1 million.

The company, together with related entity JD Euroway Capital Partners LLC, marketed itself as a bank notwithstanding that it was not authorized to carry on business as a bank in Canada.

Brothers International alleges that it assigned assets in the form of a gold certificate valued at 10 million metric tons of gold to JD Euroway Bancorp & Trust pursuant to a contract to monetize the gold certificate. Although the gold certificate was later returned to Brothers International, despite numerous requests, JD Euroway Bancorp & Trust never transferred the proceeds related to the monetization of the gold certificate to Brothers International.

JD Euroway Capital Partners and the companies’ principal, Fritzgerald Zéphir, have also been placed into bankruptcy, with appeals scheduled to be heard in July.

KPMG is the bankruptcy trustee.

Counsel is Kugler Kandestin for Brothers International.