HALIFAX – The RCMP have charged two Halifax businessmen with defrauding 16 people of about $1.5 million following a five-year investigation into an investment scheme.
The Mounties’ financial crime unit began investigating CanGlobe Group of Companies based in Halifax in April 2009 after receiving a complaint.
Police allege investors were told they would receive high interest rates in exchange for investing various amounts of money in a bridge financing scheme involving companies associated with CanGlobe.
But RCMP Cpl. Merrill Buglar alleges that the interest rates didn’t materialize and none of the investors recouped their investment.
The company could not be reached for comment.
Police say 48-year-old Douglas George Rudolph and 73-year-old Peter Arthur Donaldson Mill each face 16 charges of fraud over $5,000.
The two accused are expected in court on Wednesday.
The Nova Scotia Securities Commission, the provincial agency that regulates trading in securities, issued a cease-trade order against CanGlobe, Rudolph and Mill in 2011.