Toronto police announced that they have arrested and charged a man with 38 counts of fraud, stemming from an investment fraud that the Ontario Securities Commission (OSC) punished last year.
Police announced today that on Thursday, May 2, they arrested Marlon Gary Hibbert, 49, and Verna Michelle Hibbert, 48, both of Toronto. They were each charged with 38 counts of fraud over. Additionally, Lorraine Bahlmann, 47, of Toronto, was arrested earlier today and also charged with 38 counts of fraud. They are to appear in a Toronto court later today to answer the charges. The allegations against them have not been proven.
The charges stem from an investment scheme that was investigated by the OSC, which uncovered an apparent affinity fraud. Last year, an OSC panel ordered $5.6 million in penalties, disgorgement and costs against Marlon Gary Hibbert. It ordered that he be permanently banned from the markets, that he disgorge almost $4.7 million, which was improperly raised from investors, and that he pay an administrative penalty of $750,000, and costs of $200,000.
In April 2012, the panel found that Hibbert misled OSC staff and perpetrated a fraud on investors when he, and several corporate defendants (Ashanti Corporate Services Inc., Dominion International Resource Management Inc., Kabash Resource Management and Power To Create Wealth Inc.) traded without registration, and engaged in an illegal distribution, raising over $8.4 million from investors, many of whom were connected with a church he ran, Dominion World Outreach Ministries.
The OSC found that Hibbert repaid about $3.7 million of the $8.4 million he raised, spent $673,000 for his personal use, and donated almost $500,000 to charities controlled by his family. Police say they have identified 38 victims, who lost a total of $2.1 million, but that they believe there may be other victims.