N.B. man jailed for defrauding investors

William Watson Priest of Nackawic, NB was sentenced to three years in federal prison last week. He pleaded guilty to nine counts of fraud under the N.B. provincial Securities Act in court on Sept. 6.

“Securities laws are in place to protect investors,” says Rick Hancox, executive director of the New Brunswick Securities Commission. “Those who operate in the securities market are expected to comply with the law or they will pay the consequences.”

Priest defrauded several people he knew of more than $600,000, says the NBSC. It found 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.

It adds the money was used for personal expenses or to pay other investors, however. The initial investigation into this matter began because a New Brunswick resident reported a concern to the commission.

“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,” says Hancox.

He adds, “When people call us with tips, we will investigate and take action on any inappropriate securities-related activity.”

This matter was resolved as a result of a co-ordinated effort between the commission and the RCMP’s New Brunswick Commercial Crime Section.

Priest’s sentence was issued concurrent to the three years he received on charges stemming from the police investigation of fraud and uttering forged documents related to mortgages, says regulators.

Staff

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