The Nova Scotia Securities Commission has issued a permanent trading ban against a Nova Scotia woman, after a Florida court found that she helped operate a Ponzi scheme.
The NSSC announced Tuesday that a commission panel has determined it is in the public interest to reciprocate sanctions that were levied in Florida against Nova Scotia resident Bernadette Bowden, also known as Bernadette States.
The NSSC ordered that Bowden is:
to permanently cease trading, except for personal RRSP and TFSA accounts;
permanently prohibited from registration, using exemptions, and acting as a director or officer; and
to comply with Nova Scotia securities laws.
According to the NSSC, in October 2009, the Florida District Court found that Boden and her common law husband, Robin States (also known as Gregory Hampton) contravened securities laws by operating a Ponzi scheme. It says that from October 2004 to September 2005, States and Bowden operated Infinity Online Investors Group, which solicited investments of US$643,047 from at least 900 people in Canada, the U.S. and elsewhere.
“Misrepresentations were made to investors and the pair used most 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,” it notes.
At a hearing on May 14, the commission panel reciprocated the Florida sanctions against States. Bowden’s hearing was adjourned for a month to give her an opportunity to consult with legal counsel. Now, it is bringing sanctions against her, too.