TORONTO – A judge has sentenced two men to 12 years in prison for one of the largest Ponzi schemes in Canadian history.
Gary Sorenson and Milowe Brost were found guilty of fraud and theft in February in an elaborate scheme in which investors were promised unrealistic returns.
More than 2,400 people around the world lost up to $400 million by investing in mining and financial companies that prosecutors said were really just fronts to funnel cash to the two businessmen.
The case was part of a spate of Ponzi schemes in North America that collapsed around the time of the 2008 financial crisis as investors tried to cash out.
Ponzi schemes involve taking funds from new investors and using them to pay old ones.