A pair of fraudsters were sentenced to four years in jail and ordered to pay $6.7 million in restitution after they were convicted of several charges in connection with an illegal investment scheme.
The Ontario Securities Commission (OSC) announced on Tuesday that William Wallace and Robert Heward, who were convicted of fraud, illegal distribution, and unregistered trading, were each sentenced to four years in jail, and ordered to pay restitution of $6.7 million by Justice McLeod of the Ontario Court of Justice in Toronto. In addition to the four-year sentences for the fraud convictions, they also both received a concurrent 18 months in jail for their illegal distribution and unregistered trading convictions.
According to the OSC, Wallace and Heward orchestrated a scheme to distribute shares of Londoni Gold, which they promoted as a gold mine in Tanzania. It says that they raised at least $6.7 million from 105 investors as part of the scheme, but that a “significant portion” of those funds were diverted to support their lifestyles.
The OSC also says that they were not registered to trade, that they did not file a prospectus for the Londoni securities, and that they made misrepresentations to investors about “the operations, management team, viability and production potential of the mine.”
“This case sends a strong message to individuals engaged in securities fraud and illegal distributions that they will be held accountable for their misconduct,” said Jeff Kehoe, director of enforcement at the OSC. “We will continue to seek prison sentences for individuals who commit crimes like these, which have a devastating impact on the lives of people and their families.”
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