Six individuals and two corporations have been sentenced in connection with what the presiding Justice of the Peace called a “giant scam” involving more than US$2 million and 800 investors.

His Worship Justice of the Peace McNish issued the sentences on January 25

Douglas Walker was sentenced to 24 months in jail for nine convictions under the Ontario Securities Act. David Drennan was sentenced to six months in jail for five convictions.

Steven Peck and Ray Ricks each received 90-day sentences for three convictions.

Gerald McLeod was fined $12,000 or six convictions under the Ontario Securities Act. Al Johnson was fined $10,000 fine for five convictions.

1173219 Ontario Ltd., carrying on business as TAC (The Alternative Choice), was fined $1 million. TAC International Ltd. was also fined $1 million.

Walker, Drennan, Peck, Ricks, Johnson, McLeod, 1173219 Ontario Limited and TAC International Ltd. received the fines and sentences after being convicted of a number of offences under the Ontario Securities Act.

The offences include: trading in securities without being registered; trading in shares without having filed a prospectus; and giving undertakings to potential investors that certain shares would have a higher value in the future with the intention of effecting trades in such shares.

Between May 15, 1996 and Aug. 15, 1996, 1173219 Ontario Ltd. raised US$1,338,322.19 from the sale of shares to approximately 500 investors.

Investors were told that the value of shares in the company. would double every six to eight weeks, less a 10% commission. Investors were told that this high rate of return was due to the fact that by pooling their funds in 1173219 Ontario Ltd., they could access high yield roll programs that in the past were only available to large international banks. McNish referred to 1173219 Ontario Ltd. and TAC International Ltd. as a “giant scam”.

Between Aug. 1, 1996 and Aug. 23, 1997, TAC International Ltd. raised in excess of US$850,000 from at least 300 investors from the sale of memberships. Again, investors were told that investors in TAC International Ltd. could access high yield roll programs that the court found did not exist.