by Greg Klein | December 20, 2016
Two conmen who touted a Tanzanian gold mining stock now face prison time and restitution orders, the Ontario Securities Commission announced December 20. William Wallace and Robert Heward were each sentenced to four years and ordered to pay back $6.67 million to approximately 105 people who invested in Londoni Gold Corp. The pair were convicted of fraud, illegal distribution and unregistered trading. The last two charges brought concurrent 18-month sentences.
We will continue to seek prison sentences for individuals who commit crimes like these, which have a devastating impact on the lives of people and their families.—Jeff Kehoe,
OSC director of enforcement
Despite never having been registered with the OSC and having no prospectus for their company, the two sold Londoni shares between December 2009 and December 2013. In doing so they misrepresented the project’s operations, management, viability and production potential, the court heard. “A significant portion” of the money they raised financed their personal lifestyles.
They first appeared in a Toronto court in September 2014.
“This case sends a strong message to individuals engaged in securities fraud and illegal distributions that they will be held accountable for their misconduct,” said OSC director of enforcement Jeff Kehoe. “We will continue to seek prison sentences for individuals who commit crimes like these, which have a devastating impact on the lives of people and their families.”
The charges followed an investigation by the Joint Serious Offences Team, a partnership of the OSC, RCMP Financial Crime program and Ontario Provincial Police Anti-Rackets Branch.