The trial for two men accused of masterminding one of the biggest investment frauds in Canadian history has been postponed because of a lack of jurors.
Gary Sorenson and Milowe Brost are charged with several counts of fraud and theft in connection to an investment scheme that allegedly bilked thousands of investors out of $400M.
The pair is accused of creating a Ponzi scheme that swindled 4000 North Americans out of their investments between 1999 and December 2008.
Sorenson and Brost are accused of creating a business, Syndicated Gold Depository S.A., based on the gold commodity.
The company allegedly agreed to loan money to Merendon Mining Corporation in return for a high rate of return. The high rate of return and promises of tax advantages was then used to entice investors into putting their money in off shore shell companies.
Nominees were allegedly put in place by Brost and Sorenson to run the shell companies which were then marketed by Brost's companies, Capital Alternatives Inc. and the Institute for Financial Learning (IFFL).
The RCMP’s Integrated Market Enforcement Team arrested Brost in September 2009 and Sorenson was picked up by police when he stepped off a plane in Calgary on September 29, 2009. Both men were released on bail.
On Monday, the Crown said that this was both a multinational investment fraud predicated on non-productive South American gold mines and a Ponzi scheme.
On Tuesday, the trial was put over until next Monday because four of the sixteen jurors selected were excused for various reasons.
Going ahead with only twelve jurors can be dicey as a mistrial can be declared if more drop out in the coming months, so four new jurors will be picked on Friday.
The trial is expected to take six months and if convicted, both men could face up to 14 years in prison.
(With files from Lea Williams-Doherty)
