Nova Scotia

Ponzi scheme pair handed penalties

Two men accused of fleecing investors have been handed stiff penalties by the Nova Scotia Securities Commision.

Two men accused of fleecing investors have been handed stiff penalties by the Nova Scotia Securities Commission.

The commission found Quintin Earl Sponagle, former head of Jabez Financial Services Inc., and his lieutenant Trevor Hill orchestrated a Ponzi scheme through their investment enterprise.

They'll have to pay administrative penalties of $500,000 each — the maximum allowed by law at the time of the trading — and thousands more to cover investigation costs.

The Panama-registered company pulled in more than $4-million from almost 200 investors, 137 of them Nova Scotians, in 2006.

Jabez Financial was shut down after complaints from investors, many of whom were recruited from Rock Church in Lower Sackville and other congregations.

Sponagle, 47, faces three charges of fraud over $5,000 and one charge of theft over $5,000.

The two also face millions in fines.

Sanctions against the pair include permanent bans on future investment management activity.

Sponagle is believed to be in Panama, which has an extradition treaty with Canada.  

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