On Nov. 14, 2018, Martin Braganza, a Halifax-based account manager at the Atlantic Canada Opportunities Agency , typed up a briefing note as requested by the Minister of Innovation, Science and Economic Development’s office in Ottawa.
At the very least, ACOA was attempting to improve its processes in part to answer questions about its due diligence and stewardship of public money, but some say it has overreacted based on the failings of one smoothing-talking entrepreneur. Drage’s most egregious dealings involved Mary Wood, a British senior who lost her life savings to Drage through two failed mortgage deals while living in Canada. A 2017 court judgement ordered Drage to repay Wood more than $200,000, but she is still waiting for her money. Now in her early 70s, Wood is back in England, relying on the charity of family and friends, doubtful she’ll ever get her money back.
Internal agency documents, including Braganza’s briefing note, obtained through an Access to Information request, show that ACOA knew that revelations about funding Drage would raise serious questions about the agency’s apparent lack of controls and due diligence. Braganza served as a point of contact for Drage at ACOA, and recommended him to Duke Mighten, a comic-book artist and video-game developer who quickly became an Orpheus co-founder. Braganza knew Drage from events and conferences. Drage seemed like a well-connected businessman, an “active investor” who’d worked with ACOA on several projects.
In the end, only a single episode of the game was released , in late January 2015. Gamers who bought season passes, expecting a series of episodes, had to be refunded their money. Other Orpheus creditors include Ottawa-based OneKey Financial, Green Century Investment Ltd. in Toronto, and Duncan McNaughton, president of Ottawa-based Tiree Facility Solutions Inc., a management consulting and professional services company, who invested $500,000.
The answers to that question were originally redacted, though the department later agreed to release the information. Despite the wording of the briefing, ACOA said the changes to its funding regime are not directly related to Drage. Wright was technical director at Orpheus until April 2015, when he quit following four consecutive missed paycheques. He said he was owed about $10,000 and recalls his time at Orpheus as a “harrowing experience.”