The co-founders of Lydia Diamond Exploration of Canada Ltd. have been sentenced, in abstentia, to jail by an Ontario judge.

Jurgen and Emilia von Anhalt were convicted yesterday of improperly selling shares to investors in contravention of a 2002 Ontario Securities Commission ruling that prohibited them from trading securities for 12 years or acting as a director or officer of a public company for 15 years.

Mr. Justice John Moore found Ms. von Anhalt guilty on 65 counts, while Mr. von Anhalt was found guilty on 27 counts of contravening the Ontario Securities Act.

Ms. von Anhalt, who resides in Morocco, was sentenced to two years less a day, while Mr. von Anhalt, living in Florida, drew a 15-month sentence.

The pair were “repeat and flagrant offenders” who took more than $2 million from investors, Judge Moore said.

“The potential for abuse in the investment industry is high, and those involved have to be assured that those found to be in breach of the law will be dealt with severely,” he said.

Ms. von Anhalt did not attend the trial or have a lawyer present. Her former husband also did not attend, but was represented by lawyer David Milosevic.

The von Anhalts first appeared before the OSC in 2002, accused of raising $1.8 million from hundreds of investors in contravention of securities rules allowing no more than 50 investors in a private company.

In the current case, the OSC alleged that the duo ignored the trading ban imposed on them in 2002, and continued to entice numerous new investors to the company, which has no active operations.