The Ontario Securities Commission Wednesday imposed sanctions and costs totaling more than $500,000 against the promoters of a Ponzi scheme operating as Gold-Quest International.
From June 2006 to June 2008, investors were persuaded to invest hundreds of thousands of dollars in a scheme that promised an annual return of 87.5%.
Investors were lured to Gold-Quest as a result of the promotional activities of Naida Allarde, Bernardo Giangrosso, Kevin Persaud, Maxine Lobban and Wayne Lobban, and their respective companies, Simply Wealth Financial Group Inc. and K&S Global Wealth Creative Strategies Inc.
In June 2012, following an OSC hearing, the commission found the promoters traded in securities without registration, engaged in an illegal distribution of securities, and allowed the Simply Wealth and K&S Global companies to breach sections of the Ontario Securities Act.
In its decision on sanctions, the OSC prohibited the promoters from trading in securities for five years and ordered each of them to pay a $15,000 administrative penalty.
In addition the OSC ordered Simply Wealth, Allarde and Giangrosso to disgorge $215,790 to the commission.
K&S Global and Persaud were ordered to disgorge $90,000 to the OSC, and Maxine and Wayne Lobben were ordered to disgorge $120,427.