(Toronto, Ontario – January 30, 2015) – The Royal Canadian Mounted Police (RCMP) GTA Financial Crime Section charged five former executives of SEAQUEST CORPORATION, SEAQUEST CAPITAL CORPORATION, (SEAQUEST) and its related companies with 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 as 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 the promise rates of returns 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. The previous investors were then convinced to re-invest those returns.
As a result of this investigation, the following individuals have been charged under the Criminal Code (CC) with Fraud Over $5,000.00, 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 3 Bankruptcy and Insolvency Act charges.
Their next court date is on March 2nd 2015 at Old City Hall, and that David Holden is scheduled to appear today for a Show Cause.