On September 17, the Hon. Mr. Justice Fairgrieve of the Ontario Court of Justice found Einar Bellfield guilty on four counts of trading in securities without being registered.

Bellfield had been banned from trading pursuant to an order of the Ontario Securities Commission dated Feb. 5, 1991.

Bellfield was banned from trading until Jan. 31, 1999, as the result of a tax scam. The charges allege that in 1995, Bellfield traded in accounts at three Ontario brokerage firms.

Bellfield of Toronto, and Osvaldo Minchella of Newmarket, Ont. were found guilty of tax fraud by a jury on Dec. 9, 1999. Bellfield was sentenced to 10 years in jail and a fine of $1 million. Minchella was sentenced to seven years in jail.

Bellfield and Minchella were both found guilty on two charges for defrauding the public of tax revenues, making false claims in the amount of $118 million for the taxation years 1984 to 1991, and defrauding investors of $22 million in 36 limited partnerships. They were also convicted on two charges of producing false documents for Revenue Canada and their investors.

The pair were promoters for Overseas Credit and Guaranty Corp., which marketed and sold units in limited partnerships to 613 investors by promoting immediate tax relief for each investor. All investors were to acquire part ownership in 80 foot yachts and receive charter revenues from their investments. In reality, only two yachts were ever built.

In 1985, Bellfield set up two Swiss shell companies Neptune and Starlight. Both companies purported to supply services and financing for Overseas Credit and Guaranty Corporation. In reality, both these corporations provided Overseas Credit and Guaranty Corporation with false invoices, loan account statements, and other documentation.