A New Brunswick man has received a three year federal prison sentence for securities fraud, reports the New Brunswick Securities Commission (NBSC).
The NBSC says that William Watson Priest was sentenced to three years in prison after pleading guilty to nine counts of fraud under the Securities Act. He pled in provincial court on September 6.
The regulator reports that Priest defrauded several people he knew of more than $600,000.It says that he solicited money purportedly for real estate investments, for financing short-term high-interest loans, or for building projects using loan agreements and/or promissory notes. Instead, it says that the money was used for personal expenses or to pay other investors.
“Securities laws are in place to protect investors,” said Rick Hancox, executive director of the NBSC. “Those who operate in the securities market are expected to comply with the law or they will pay the consequences.”
The initial investigation into this case was sparked by a complaint to the commission. “When people call us with tips, we will investigate and take action on any inappropriate securities-related activity,” said Hancox, adding that, “This underlines the importance of not only knowing who you are dealing with and their qualifications, but also what you are investing in and how it will make a return. Investors should do their own homework and ensure that if they invest they receive written confirmation of their investment and statements.”