After Abandoning Canadian Tax Bill, ‘Wolf of Montreal’ Got New Identity, Latvian Residency, Dubai Condo

A controversial Canadian penny stock trader — dubbed the “Wolf of Montreal” for his allegedly fraudulent dealings — acquired a new identity, obtained residency in Latvia, and purchased luxury property in Dubai, documents show.

John Babikian, a former Montreal resident, vanished from the public eye after a 2014 deal with the U.S. Securities and Exchange Commission (SEC). He agreed to pay $3.7 million into a victim compensation fund to settle allegations of fraud without admitting or denying responsibility. 

The SEC’s case centered on Babikian’s “scalping” method of cashing in on low-value stocks that he promoted online. The operation earned him a nickname in the media similar to Jordan Belfort, whose late 1980s exploits were documented on film in the “Wolf of Wall Street.”

By the time of SEC settlement, Babikian had already amassed a fortune and left Canada, leaving behind claims by authorities there that he owed about $14 million in unpaid taxes.

While SEC said in 2014 that Babikian’s whereabouts were unknown, OCCRP traced his path through Lebanon, Latvia and the United Arab Emirates (UAE). Reporters also obtained a copy of his Canadian passports, including one issued in 2019 indicating he legally changed his name to James Miller.

Babikian did not reply to emails sent to two of his addresses, one found in Canadian court documents and the other in Dubai property records. Joseph Groia, a Toronto lawyer who previously represented him, said his firm had “not acted for or had any contact with Mr Babikian for many years.”

Babikian’s new name surfaced in court files for a case involving former Austrian intelligence officer Martin Weiss, who is reportedly under investigation for alleged espionage. The prosecution office in Vienna told OCCRP that they could not comment on “investigative procedures” around the Weiss case.

Weiss was questioned by Austrian prosecutors about an individual identified in court records as Aleksandr V., who was facing charges in Germany related to the Wirecard AG case.  

Wirecard, a payments processing giant, collapsed in 2020 after executives allegedly committed fraud to boost its share price on the Frankfurt Stock Exchange. Weiss testified that Aleksandr V., told him Babikian was a “good business partner” of his. Babikian was not charged in the case. In response to OCCRP, Munich prosecutors said the case is ongoing against Alexandr V., who declined to comment.

Among the files in the Weiss case were copies of Canadian passports in the names of both Babikian and Miller. During questioning, Weiss said he received copies of Babikian’s passports in order to help with his application for Hungarian citizenship. It’s unclear if that application was successful. The files also include a copy of a Latvian residence permit issued to Babikian under his new name, Miller.

Weiss did not respond to requests for comment, including questions about his relationship with Babikian. 

Meanwhile, leaked real estate records from OCCRP’s Dubai Unlocked investigation show that Babikian, under his Miller alias purchased an apartment in Palm Jumeirah, a tree-shaped artificial archipelago off the UAE coast. 

The apartment is in One at Palm, a waterfront complex advertising that its “ultra-exclusive homes are built for the singular pursuit of bliss.” Under his Miller name, Babikian paid $4.6 million for the property in 2022, according to information from a UAE real estate database.

‘Scalping’ Stocks

The Dubai property may not have made much of a dent in Babikian’s budget. He had already become a millionaire many times over, according to court documents from his Canadian tax evasion case. Canadian tax authorities declined to clarify whether the case is still open or not.

Babikian dramatically under-declared his income to the Canada Revenue Agency, according to allegations in an affidavit filed by an investigator. Between 2008 and 2012, he allegedly failed to report more than CAN $44 million (about $44.2 million at the end of 2012), the tax investigator said. 

During that five-year period, Babikian reported an income of only CAN $974,633 ($977,938). He didn’t declare any income at all in 2011, when he made almost CAN $8.4 million ($8.2 million), according to the tax investigator’s findings. He also allegedly failed to declare income in 2012, when he made close to CAN $20 million ($20.1 million). 

Babikian’s 2012 earnings were allegedly bolstered by his penny stock “scalping” operation, which brought in $1.9 million in just 90 minutes, the SEC said.

Babikian’s scheme was likened to a modern-day take on the “boiler rooms” run by Belfort in the ‘80s, which were packed with people flogging cheap stocks over the phone. But in typical 21st century fashion, Babikian did his business online. 

The SEC alleged Babikian was behind emails sent to 700,000 people between about 2:30 and 4:00 on the afternoon of February 23, 2012. During that period, the share price for a coal company called America West Resources Inc. jumped from 29 cents to a high of $1.80.

The emails allegedly linked to Babikian pumped up the cheap stock without disclosing that he owned more than 1.4 million shares in America West, the SEC said. The emails “immediately triggered massive increases” in the share price, and Babikian dumped his stock.

Babikian eventually reached an agreement with the SEC, which ordered him to pay $3.7 million to a fund to compensate victims of the scalping scheme, without admitting or denying responsibility. The judgement barred Babikian from trading penny stocks.

Back in Canada, Babikian allegedly owed tax authorities more than CAN$15 million in 2014 (about $14 million at the time), plus “interest compounded daily on said amount,” according to court records acquired by OCCRP.

The Canada Revenue Agency declined to clarify whether the debt remains active, which would include interest accrued since 2014. A spokesperson said the agency “does not comment on investigations that it may or may not be undertaking.”

Tax authorities in Quebec told OCCRP that they managed to seize and liquidate some of Babikian’s assets, recovering a portion of the money he owed in provincial taxes, which amounted to CAN$4.6 million ($4.2 million at the time) starting in April 2013. 

Tax authorities also confiscated “two bull sculptures in bronze and silver worth several hundred thousands dollars,” along with 500 bottles of wine also valued at “several hundred thousand dollars,” according to a document from a civil suit filed by the Quebec Revenue Agency.  However, they failed to recover Babikian’s Bugatti Veyron, a luxury vehicle that typically sells for more than $1 million.

Fake News

While Babikian settled with the SEC in 2014, his legal troubles in the U.S. continued, court documents show.

In September 2023, an Oregon jury reportedly ordered Babikian to pay a businessman in the small city of The Dalles $23.4 million over a vineyard deal that went sour, according to the plaintiff’s lawyer, Chad Colton.

A legal declaration from the case, obtained by OCCRP, shows Babikian asking in August 2023 for permission to testify remotely by videolink, because he was living in Lebanon and too ill to travel. A December 2023 judgement shows that the plaintiff was awarded total ownership of the vineyard.  

The Columbia Gorge News reported that Babikian forfeited his 50 percent share in the property rather than pay the fine. Colton did not respond to requests for comment, while Babikian’s lawyer in the case said he was not authorized to speak to reporters about it. 

Aside from shedding light on Babikian’s more recent legal issues, and revealing that he was in Lebanon in mid-2023, the case highlights an apparent attempt to clean up his public image.

Almost a decade after reporting on the vineyard case, OregonLive.com received an email with the subject heading, “Urgent legal request.” The email purported to be from Babikian’s representative, and requested the website remove a 2014 article about the land dispute, which also referenced the SEC allegations. The writer of the email said the article contained “inadequate allegations” against Babikian — despite his well-publicized deal with the SEC.

That email was not an isolated request. It appears to be a part of a broader pattern of digital identity manipulation. Several articles have appeared online, spreading the false claim that Babikian was acquitted in the SEC case.

Meanwhile, Babakian’s true identity has been shrouded by suspicious profiles on social media sites like Tumblr, Instagram and Soundcloud, as well as articles on dubious websites.

When reporters searched his name in google, the first page showed either one or no posts about the real Babikian, despite widespread media coverage of his various legal cases. Instead, numerous posts and articles appear for another John Babikian, also purportedly born in Montreal, but supposedly of Rwandan heritage. 

The photo of this Babikian was likely manipulated, and possibly generated, using artificial intelligence, according to three different tests 

That headshot has been used in an X account, which an investigation by Forbidden Stories linked to an apparent disinformation campaign propagated in favor of the Rwandan government.

An online profile claims that this Rwandan Babikian is “a seasoned lawyer with an illustrious educational background,” who graduated from Harvard. Reporters could find no evidence that the Rwandan lawyer named John Babikian who graduated from Harward actually exists. 

The profile includes a quote from Babikian’s supposed “mentor,” Alan Dershowitz, the high-profile lawyer and former Harvard law professor: “John Babikian's dedication to justice and his unwavering commitment to serving the less fortunate set him apart from his peers.”

Dershowitz told OCCRP the quote was fake.

"I know nothing of him,” he said in a brief email.

Sanita Jemberg of Re:Baltica contributed reporting.