Nova Scotia pair sanctioned for Ponzi scheme

The Nova Scotia Securities Commission has reciprocated a Florida District Court order with sanctions against Nova Scotia resident Robin States.

States, also known as Gregory Hampton, was operating as Infinity Online Investors Group. The hearing against Bernadette Bowden, also known as Bernadette States, was adjourned to June 14, to give her an opportunity to consult with legal counsel.

In an Oct. 30, 2009 decision, the Florida District Court found that the pair had contravened securities laws by operating a Ponzi scheme, and that Hampton failed to obtain appropriate registration and deliver required disclosure and account statements to investors.

From October 2004 to September 2005, he operated as Infinity Online Investors Group, solicited investments of US$643,047 from at least 900 people in Canada, the U.S. and elsewhere.

Misrepresentations were made to the investors and the pair used the majority of the investments for personal expenses. They were not registered to sell securities in Canada and no prospectus had been filed with the commission to offer the investments.

The commission panel determined it is in the public interest to reciprocate the Florida sanctions and ordered Hampton:

• to comply with Nova Scotia securities laws — to permanently cease trading in all classes of securities, directly or indirectly, except for personal registered retirement savings plans or tax-free savings accounts
• is permanently prohibited from using any of the exemptions contained in Nova Scotia securities laws
• is permanently prohibited from becoming, or acting as, a director or officer of any issuer, registrant or investment fund manager
• is permanently prohibited from becoming or acting as a registrant, investment fund manager or promoter

Staff

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