Accused Ponzi schemer charged in N.S.
Quintin Sponagle faces 3 fraud charges, 1 theft charge
CBC News
Posted: Jun 14, 2011 12:11 PM AT
Last Updated: Jun 14, 2011 2:05 PM AT
RCMP in Nova Scotia have charged the man at the centre of an alleged Ponzi scheme that investigators say defrauded nearly 200 investors of millions of dollars.
Quintin Earl Sponagle, former head of Jabez Financial Services, is facing three counts of fraud over $5,000 and one count of theft over $5,000.
RCMP announced the charges on Tuesday, saying the investigation was long and complex. The case was referred to them by the Nova Scotia Securities Commission more than five years ago.
"We began right away and throughout the time frame there was a lot of investors and a lot of money that had to be followed," said Insp. Jim MacDougall, head of the RCMP's financial crimes division in Nova Scotia.
RCMP allege that 179 investors were defrauded of more than $4 million. MacDougall said 141 of those investors were in Nova Scotia.
Sponagle and Trevor Hill, his chief lieutenant, also face millions in fines.
$6.4M in fines: commission
As a securities commission hearing wrapped up in Halifax on Tuesday, a lawyer for the commission called for $6.4 million in fines against the two men.
"It is effectively double the amount illegally taken from Nova Scotia investors," Heidi Schedler said in her closing argument.
Jabez Financial was shut down after complaints from investors, many of whom were recruited from Rock Church in Lower Sackville and other congregations.
Last week, the securities commission heard that investors couldn't resist the promise of turning $10,000 into $1 million in less than four years. They liquidated their RRSPs and even a child's inheritance.
Sponagle used their money like it was his own personal bank account, the commission heard.
Sponagle, 47, is believed to be in Panama, which has an extradition treaty with Canada.
MacDougall said RCMP and prosecutors are taking steps to have him brought back to Canada to face charges.
With files from The Canadian PressShare Tools
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