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Wednesday, September 16, 2009

Canadian police charge two over Ponzi scheme

Police in Canada have charged two men with allegedly running a Ponzi-style fraud worth over $193.5 million.

Milowe Brost and Gary Sorenson have been accused of convincing investors to place money into offshore shell companies they secretly ran by promising them high returns.

According to the country's Globe and Mail newspaper, as many as 3,000 victims across Canada and the US were involved and the amount accrued by the fraud could be as much as $374 million.

Police arrested Mr Brost but Mr Sorenson - who is believed to be in Honduras - has not yet been taken into custody.

The charges come following a three-and-a-half year investigation into the case and police have been criticized for not discovering and stopping the scheme sooner.

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