|Brian Malley, accused of sending an explosive package that killed Innisfail single mom Vicky Shachtay, is now facing an $80 million class action suit from former investors. FILE PHOTO
CALGARY - The man accused in the bombing death of one of his clients is now being hit with an $80-million class-action lawsuit.
Carsten Jensen, a partner with Calgary law firm JSS Barristers, confirmed the lawsuit against Brian Malley, 55, was filed in court in Red Deer Monday.
The suit revolves around clients of the companies where Malley worked, Assante Wealth Management and Assante Capital Management, who allege they were victims of a "one-size-fits-all strategy" that disregarded personal risk, said Jensen.
"We have met with over eight clients who are in this circumstance -- we expect others will come forward in the coming days," Jensen said.
In May, Malley was charged with first-degree murder in the death of Victoria Shachtay, a 23-year-old paraplegic single mom.
Shachtay was at her Innisfail home in November 2011 when an explosive parcel was delivered to her door. She was killed by the blast when she opened the package.
Her seven-year-old daughter was not home when the bomb went off, and a live-in caregiver was not injured in the explosion.
Shachtay had received a large financial settlement after a car crash took the use of her legs when she was 16 years old. Malley was her financial advisor.
Jensen said while the class-action suit isn't related to that case, it was the arrest and charge in Shachtay's death that prompted clients of Malley's companies to examine their records.
"A number of people became aware of problems with their accounts surrounding the publicity of Malley being charged," he said.
"We've looked at their records -- we're quite confident in the merits of this case."
The lawsuit seeks $50 million for the alleged investor losses, $20 million in general damages and $10 million in punitive damages, Jensen said.
Malley's wife, Christine Malley, is also named as a defendant.
"She worked in the office and she had a supervisory role," Jensen said.
The defendants were expected to be served this week.
A statement of defence had not been filed as of Wednesday, Jensen said.
After the defendants get counsel, the next step is convincing the court a class-action lawsuit is the best way to go, he said.
None of the allegations have been proven in court.