Accused Ponzi schemer charged in N.S.

RCMP in Nova Scotia have charged the man at the centre of an alleged Ponzi scheme that investigators say defraudednearly 200investors of millions of dollars.

Quintin Earl Sponagle, former head of Jabez Financial Services, is facing three counts of fraud over $5,000 and one count of theft over $5,000.

RCMP announced the charges on Tuesday, saying the investigationwas long and complex. The case was referred to them by the Nova Scotia Securities Commission more than five years ago.

"We began right away and throughout the time frame there was a lot of investors and a lot of money that had to be followed," said Insp. Jim MacDougall, head of the RCMP'sfinancial crimes division in Nova Scotia.

RCMPallege that179 investors were defrauded of more than $4 million. MacDougall said 141 of those investors were in Nova Scotia.

Sponagle and Trevor Hill, his chief lieutenant, also face millions in fines.

$6.4M in fines: commission

As a securities commission hearing wrapped up in Halifax on Tuesday, a lawyer for the commissioncalled for$6.4 million in fines against the two men.

"It is effectively double the amount illegally taken from Nova Scotia investors," Heidi Schedler said in her closing argument.

Jabez Financial was shut down after complaints from investors, many of whom were recruited from Rock Church in Lower Sackville and other congregations.

Last week, the securities commission heard thatinvestors couldn't resist the promise of turning $10,000 into $1 million in less than four years. They liquidated their RRSPs and even a child's inheritance.

Sponagle used theirmoneylike it was his own personal bank account, the commission heard.

Sponagle, 47, is believed to be in Panama, which has an extradition treaty with Canada.

MacDougall said RCMP and prosecutors are taking steps to have him brought back to Canada to face charges.