Ponzi scheme broken up

A Hamilton-area man accused of running a $14-million US Ponzi scheme has agreed to turn over money and pay a penalty following a settlement reached with the U.S. Securities and Exchange Commission.

HAMILTON, Ont. — A Hamilton-area man accused of running a $14-million US Ponzi scheme has agreed to turn over money and pay a penalty following a settlement reached with the U.S. Securities and Exchange Commission.

Gordon Driver of Freelton, Ont., and his company, Axcess Automation, reached the agreement just days after the SEC had gone to a California court seeking a contempt order against Driver for not complying with previous court-ordered requirements.

The SEC was also asking the judge to consider jail time as a possible sanction against Driver if he was found guilty of contempt.

Driver and his company are alleged to have defrauded more than 100 Canadian and American investors since 2006 by promising them weekly returns on their investment as high as five per cent, based on special software he claims he developed to trade futures.

A court hearing will be held to determine the amount of money that Driver must turn over and the size of the penalty he faces.

Contacted by e-mail Saturday, Driver declined to answer questions about the agreement.

Driver and his company are not registered to sell and trade securities in either Ontario or the U.S.

The Ontario Securities Commission has already ordered Driver and Axcess Automation to cease all trading. (Hamilton Spectator)

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