An Ontario court has called the serial fraudster “incorrigible”.

The author of an apparent Ponzi scheme was sentenced to 12 years in prison and to pay a fine of 54 million dollars (M$).

The Ontario Superior Court of Justice has ordered sanctions against David Holden, who was convicted of fraud and money laundering in a long-running scheme that took more than $54 million from investors in his companies, Seaquest Corp. and Seaquest Capital Corp.

The prosecution requested a 14-year sentence for the fraud conviction and 10 years for the money laundering. The defense requested eight years on each count, to be served concurrently.

In its reasons, the court noted that the 65 victims of the scheme were not sophisticated investors. Some of them were relatively wealthy, while others lost their savings, and "all were vulnerable to Mr. Holden's shrewd selling and calculated predation".

"In general, the overall effect of this fraud on victims can be described as catastrophic and devastating," the court said.

The court also noted that David Holden had already been the subject of numerous convictions.

In 1995, he pleaded guilty to 46 securities offences, including trading without a registration or prospectus. He was sentenced to 90 days in prison and two years probation for those convictions.

In 2000, Holden pleaded guilty to three counts of fraud over $5,000 and was sentenced to six years in prison for embezzling investor funds.

“Almost 350 investors were defrauded, many of whom had invested their retirement savings. The total amount of the three frauds was approximately $4.3 million,” the court said of the charges.

While on parole, Holden started the Seaquest Corp. which “became the primary vehicle for the commission of this fraud,” the court said.

The court also found that the defendant had not taken responsibility for his actions in the latter case.

“In a word, Mr. Holden is incorrigible. He is polite, sympathetic, and cordial, characteristics not usually found in repeat criminals. But these are the basic qualities of the mediator,” the court said.

The court ordered Holden to serve 12 years for fraud, and eight years for money laundering, to be served concurrently. He also imposed a fine of $54.2 million in lieu of forfeiture.

David Holden was given 10 years to pay the fine after the 12-year prison sentence expired. If the fine is not paid, he will have to serve five more years.