It began business in 1953 and was eventually headed by Campbell Powell Morgan, a chartered accountant living in Toronto's Lawrence Park district.
[2] This included a $10 million loan to the mob-connected Lucayan Beach Hotel and Casino in the Bahamas, controlled by Louis Chesler and Wallace Groves, and secured only by stock in the resort.
[3] Atlantic Acceptance also issued misleading financial statements, and there were conflicts of interest by Morgan and by the outside auditors (Wagman, Fruitman & Lando).
Accountants William Walton and Harry Wagman were convicted of theft and conspiracy to defraud in 1967 and sentenced to two years in prison.
[5] British Mortgage and Trust Company, which was a creditor of and an investor in Atlantic Acceptance, was rescued by the Ontario government.