A former financial manager from Nova Scotia who pleaded guilty to fraud in an investment scam involving more than 200 victims could face five years in prison for failing to pay a fine of more than $1 million.
Quintin Sponagle, 59, appeared in Halifax provincial court Monday for a hearing to determine whether he has the ability to pay the court-ordered fine related to his 2017 sentencing, and whether he is refusing to do so.
Sponagle said in an interview outside the courtroom he intends to “prove poverty” in the case, even as he maintained he still wants to eventually pay back clients who lost money through his investment firm.
“It’s been a very difficult run for a number of years,” he said of his financial situation.
The Upper Vaughn, N.S., man pleaded guilty seven years ago to one count of fraud involving 201 victims, many of them from Sponagle’s social circle, who invested $4.4 million in a company he controlled that was incorporated in Panama and maintained an office in Windsor, N.S.
The Nova Scotia Securities Commission and RCMP began investigating in 2006 following complaints from some investors. An analysis found $1.1 million had not been funnelled into investments, but was instead spent by Sponagle on vehicles, RVs, property, international travel, personal expenses and other payments.
Regulators from the securities commission revealed in a 2011 hearing that Sponagle and a business associate recruited investors from church groups, including the Rock Church in Lower Sackville, N.S.
Panama prison
At sentencing in 2017, a Nova Scotia judge took into account nearly 20 months Sponagle spent in Panama’s La Joya Penitentiary — a prison with “cruel, inhumane and degrading conditions” — while he unsuccessfully fought his extradition to Canada.
Sponagle was handed one year of probation and a $1.1-million fine. But if he did not pay the money in five years, he faced five years in prison. That timeframe has now elapsed, and Sponagle has only paid $10,000.
Prosecutor Shauna MacDonald said Monday outside the courtroom that in order for Sponagle to be put behind bars, the Crown must prove he has the ability to pay but is refusing to do so.
Sponagle has indicated he plans to testify when the hearing resumes next week.
“He’s consistently maintained up until today that he has had the ability to pay,” MacDonald said. “We’ll have to hear more from him next time.”
Wife testifies
On Monday, Sponagle’s wife of 38 years, Shelley Sponagle, testified she has earned only a small amount of income in recent years, and now works as a housecleaner. Her husband, she said, does renovation work for a man in Hantsport, N.S.
She testified her husband handles some of the bills, but said she didn’t know how much money he earns, the full name of the person he works for, or how he is paid.
She said there is still an amount owing on the mortgage of the home the couple owns in Upper Vaughan, and there are two vehicles under her name, although one is broken down. She has no investments or money for retirement, she said.
“I’m just trusting in God for my future,” she said.
The hearing is being held at Halifax provincial court. (Robert Short/CBC)
She also defended her husband, telling the court he’s been the victim of “fake news.” She said he believed in the investments he was making, and that his intention was to help people.
“His motive was never to take people’s money,” she said.
Quintin Sponagle said outside the courtroom that he is “innocent” of the charge of fraud, and that he only agreed to plead guilty in late 2016 because his family and clients were “being pestered very badly” by authorities.
He said he wants to pay clients back, and has been “working on things in the background that have not panned out yet.”
TORONTO – Canada’s main stock index was down more than 200 points in late-morning trading, weighed down by losses in the technology, base metal and energy sectors, while U.S. stock markets also fell.
The S&P/TSX composite index was down 239.24 points at 22,749.04.
In New York, the Dow Jones industrial average was down 312.36 points at 40,443.39. The S&P 500 index was down 80.94 points at 5,422.47, while the Nasdaq composite was down 380.17 points at 16,747.49.
The Canadian dollar traded for 73.80 cents US compared with 74.00 cents US on Thursday.
The October crude oil contract was down US$1.07 at US$68.08 per barrel and the October natural gas contract was up less than a penny at US$2.26 per mmBTU.
The December gold contract was down US$2.10 at US$2,541.00 an ounce and the December copper contract was down four cents at US$4.10 a pound.
This report by The Canadian Press was first published Sept. 6, 2024.
TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in technology, financial and energy stocks, while U.S. stock markets also pushed higher.
The S&P/TSX composite index was up 171.41 points at 23,298.39.
In New York, the Dow Jones industrial average was up 278.37 points at 41,369.79. The S&P 500 index was up 38.17 points at 5,630.35, while the Nasdaq composite was up 177.15 points at 17,733.18.
The Canadian dollar traded for 74.19 cents US compared with 74.23 cents US on Wednesday.
The October crude oil contract was up US$1.75 at US$76.27 per barrel and the October natural gas contract was up less than a penny at US$2.10 per mmBTU.
The December gold contract was up US$18.70 at US$2,556.50 an ounce and the December copper contract was down less than a penny at US$4.22 a pound.
This report by The Canadian Press was first published Aug. 29, 2024.
The crypto market has recently experienced a significant downturn, mirroring broader risk asset sell-offs. Over the past week, Bitcoin’s price dropped by 24%, reaching $53,000, while Ethereum plummeted nearly a third to $2,340. Major altcoins also suffered, with Cardano down 27.7%, Solana 36.2%, Dogecoin 34.6%, XRP 23.1%, Shiba Inu 30.1%, and BNB 25.7%.
The severe downturn in the crypto market appears to be part of a broader flight to safety, triggered by disappointing economic data. A worse-than-expected unemployment report on Friday marked the beginning of a technical recession, as defined by the Sahm Rule. This rule identifies a recession when the three-month average unemployment rate rises by at least half a percentage point from its lowest point in the past year.
Friday’s figures met this threshold, signaling an abrupt economic downshift. Consequently, investors sought safer assets, leading to declines in major stock indices: the S&P 500 dropped 2%, the Nasdaq 2.5%, and the Dow 1.5%. This trend continued into Monday with further sell-offs overseas.
The crypto market’s rapid decline raises questions about its role as either a speculative asset or a hedge against inflation and recession. Despite hopes that crypto could act as a risk hedge, the recent crash suggests it remains a speculative investment.
Since the downturn, the crypto market has seen its largest three-day sell-off in nearly a year, losing over $500 billion in market value. According to CoinGlass data, this bloodbath wiped out more than $1 billion in leveraged positions within the last 24 hours, including $365 million in Bitcoin and $348 million in Ether.
Khushboo Khullar of Lightning Ventures, speaking to Bloomberg, argued that the crypto sell-off is part of a broader liquidity panic as traders rush to cover margin calls. Khullar views this as a temporary sell-off, presenting a potential buying opportunity.
Josh Gilbert, an eToro market analyst, supports Khullar’s perspective, suggesting that the expected Federal Reserve rate cuts could benefit crypto assets. “Crypto assets have sold off, but many investors will see an opportunity. We see Federal Reserve rate cuts, which are now likely to come sharper than expected, as hugely positive for crypto assets,” Gilbert told Coindesk.
Despite the recent volatility, crypto continues to make strides toward mainstream acceptance. Notably, Morgan Stanley will allow its advisors to offer Bitcoin ETFs starting Wednesday. This follows more than half a year after the introduction of the first Bitcoin ETF. The investment bank will enable over 15,000 of its financial advisors to sell BlackRock’s IBIT and Fidelity’s FBTC. This move is seen as a significant step toward the “mainstreamization” of crypto, given the lengthy regulatory and company processes in major investment banks.
The recent crypto market downturn highlights its volatility and the broader economic concerns affecting all risk assets. While some analysts see the current situation as a temporary sell-off and a buying opportunity, others caution against the speculative nature of crypto. As the market evolves, its role as a mainstream alternative asset continues to grow, marked by increasing institutional acceptance and new investment opportunities.
