The sentencing hearing for two men convicted of masterminding one of the biggest investment frauds in Canadian history has been delayed for three months to allow one of the lawyers in the case to get up to speed.
Gary Sorenson and Milowe Brost were found guilty earlier this year by a Calgary jury of fraud and theft in connection to a Ponzi scheme that was centered around a Honduran gold mine. Brost was also convicted of money laundering.
Hundreds of investors lost between $100M and $200M on the scheme between 1999 and December 2008.
Investors were promised a 34 percent annual return on an investment of $99,000 which was supposed to grow to $1,035,000 within eight years and were told that the business involved selling gold for refining and that the deal was "low risk."
Both men were arrested in 2009 and released on bail. They were both ordered back into custody prior to the sentencing hearing.
During the trial, the Crown argued that there was not really a legitimate investment opportunity and said that the men used the money to pay off earlier investors and keep the scheme running.
The defence claimed that there was a legitimate gold mine that was producing and that the pair was operating in good faith and it was just an unsuccessful business venture.
Sorenson represented himself during the trial and on Friday told the court that he hired a lawyer to help him with the sentencing phase of the case.
Justice Robert Hall agreed to delay the proceedings to allow Sorenson’s lawyer time to get up to speed.
The hearing is now scheduled for June 8th and 9th but the judge and lawyers for both men will meet before then to discuss which facts will be used during sentencing.
Justice Hall also recommended that the Crown try to get ahold of as many investors as possible in case they want to make a request for restitution when sentencing gets underway.
"Those that are known should be given the opportunity," said Hall.
Both men could face up to 14 years in prison.
(With files from Lea Williams-Doherty and The Canadian Press)
