A panel of the New Brunswick Financial and Consumer Services Tribunal (Tribunal) ordered William Priest of Nackawic to disgorge almost $600,000 to the N.B. Financial and Consumer Services Commission (FCSC) and has banned him from the investment industry for life.
The disgorged amount represents the amount that Priest defrauded from several investors. The decision was released Wednesday following a hearing on May 16.
Priest was sentenced to three years in prison after pleading guilty to nine counts of fraud under the Securities Act in provincial court in September 2012.
“The Tribunal considered the evidence presented by staff as well as compelling written statements provided by the defrauded investors,” said Rick Hancox, CEO of the FCSC. “It was important that those who were defrauded had an opportunity to express the impact and effects that this crime had on them, their family and friends.”
A disgorgement order requires a person or firm to surrender money obtained as a result of breaking New Brunswick securities laws. Any money received by the commission as a result of the disgorgement order will be distributed to the investors who have suffered a loss in this matter.
This is the final proceeding against Priest in this matter. The criminal matter brought forward by the RCMP and the court proceedings under the Securities Act for fraud against the investors resulted in Priest’s conviction.
The New Brunswick Securities Commission became part of the FCSC established by the province on July 1. The FCSC brings together the regulatory authorities for securities, insurance, pensions, consumer affairs, co-operatives, credit unions, caisses populaires, and loan and trust companies.
The adjudicative functions of the commission are performed by the Financial and Consumer Services Tribunal.