Five Charged In $75 Million Ponzi

By Jean Juneau

(TORONTO, ON) – The Royal Canadian Mounted Police have charged five former executives of Seaquest Corporation, Seaquest Capital Corporation, and its related companies, with Canadian Criminal Code as well as Bankruptcy and Insolvency offences.

In November 2011, Seaquest initiated bankruptcy proceedings in order to obtain creditor protection from their investors. Seaquest claimed they were unable to pay their creditors after amassing a debt of $75 million owed to approximately 70 creditors.

In February of 2012, the Office of the Superintendent of Bankruptcy (OSB) referred the matter to the RCMP, who launched an investigation into Seaquest’s activities.

It is alleged that Seaquest collected $92 million dollars from investors with promised rates of return up to 36%. However, it is also alleged that the money was not invested but instead put into a Ponzi scheme, where new investor funds were used to pay old investors.

“It’s important for the public to know that before investing in any financial venture, they should do their due diligence and that the higher the expected rate of return usually means a higher risk of fraud,” said Inspector Gairy of the RCMP GTA Financial Crime Section.

The previous investors were then convinced to re-invest those returns.

As a result of the investigation, five individuals have been charged with Fraud Over $5,000, Money Laundering, and Commission of offence for Criminal Organization.

  • David Burns Holden, 52, of Richmond Hill
  • Rose/Rosa Rita Holden, 57, of Richmond Hill
  • Anthony Mario Cosentino ,67, of Toronto
  • Andrew Gaudet, 43, of Oakville
  • Edmond Chin Ho So, 37, of Toronto

Additionally David and Rose Holden have been charged with three Bankruptcy and Insolvency Act charges. Their next court date is on March 2 at Old City Hall.

Click for the latest news

About the Author

Ian Shalapata
Ian Shalapata
Ian Shalapata is the owner and publisher of Square Media Group. He covers politics, the police beat, community events, the arts, sports, and everything in between. His imagery and freelance contributions have appeared in select publications and for organizations in Canada and the United States. Contact Ian with story ideas.