Sanctions Issued Against Bernadette Bowden

The Nova Scotia Securities Commission has reciprocated a Florida District Court order with sanctions against Nova Scotia resident Bernadette Bowden.

Ms. Bowden, also known as Bernadette States, was the common-law spouse of Robin States, also known as Gregory Hampton. On Oct. 30, 2009, the Florida District Court found that the pair had contravened securities laws by operating a Ponzi scheme.

From October 2004 to September 2005, Mr. States, operating as Infinity Online Investors Group, solicited investments of $643,047 US from at least 900 people in Canada, the U.S. and elsewhere. Ms. Bowden helped Mr. States operate Infinity Online. Misrepresentations were made to investors and the pair used most of the investments for personal expenses. They were not registered to sell securities in Canada and no prospectus had been filed with the commission to offer the investments.

At the hearing on May 14, 2012, the commission panel reciprocated the Florida sanctions and issued an order May 16 against Mr. States.

Ms. Bowden's hearing was adjourned from May 14 until June 14 to give her an opportunity to consult with legal counsel. The commission panel has determined it is in the public interest to reciprocate the Florida sanctions and ordered that Ms. Bowden is:

• to comply with Nova Scotia securities laws
• to permanently cease trading in all classes of securities, directly or indirectly, except for personal registered retirement savings plans or tax-free savings accounts
• permanently prohibited from using any of the exemptions contained in Nova Scotia securities laws
• permanently prohibited from becoming, or acting as, a director or officer of any issuer, registrant or investment fund manager
• permanently prohibited from becoming or acting as a registrant, investment fund manager or promoter.

The Nova Scotia Securities Commission is the provincial government agency responsible for regulating trading in securities in the province. To view the order, visit www.gov.ns.ca/nssc/compliancenforce/enforproceedings.asp .