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They began to accept investment money from people throughout North America, offering high-yield returns of eight to 12% interest per month compounded quarterly, and placed the money in bank accounts.

The men eventually retained Alberta lawyer Garth Bailey to receive the investment funds into his trust account, and represented to investors that their money was secure because it was protected by a $30-million bond in trust controlled by Bailey.

It was to be liquidated for the benefit of investors, who could be indemnified if the HMS Financial investments failed.

Documents found during a search of the HMS office showed some of the money was invested with high-yield investment programs in the U.S. — Aspire and Dresden/Tuscany, which were, in turn, another investment fraud.

However, Fyn and Stark failed to disclose to HMS investors that the Aspire high-yield plan failed and no principal or interest was returned from that investment.

The men also failed to disclose to their investors that three banks — in Three Hills, Linden and Acme — had closed the HMS accounts for suspicious banking activities. They also did not advise the investors that Bailey’s accounts were also closed for the same reason.

None of the investors, as well, were advised that the investment programs were not viable and did not return any interest at all, and that the $30-million so-called indemnity bond with Bailey did not exist.

Fyn, Stark and HMS also failed to advise their investors that principal and interest was repaid to early investors by money placed by later investors, not from bona fide investment income as the investors were led to believe.