TRURO - The Truro Police Services Criminal Investigation Division has laid charges in a multi-year investigation of fraud, forgery and breach of trust.
Facing charges is John Alexander Allen, a former employee of Keybase Financial in Truro. Allen is due to appear in Truro provincial court next month.
Truro solicitor Robert Pineo filed the action against Allen in Nova Scotia Supreme Court last December.
The Nova Scotia Securities Commission fined Allen more than $1 million for bilking dozens of clients out of an estimated $14 million. Allen was ordered to pay $1.05 million to the commission and $7,000 in investigation and proceedings costs after he admitted in an agreed statement of facts to violating the Securities Act and engaging in unfair practices.
The Supreme Court claim alleged Allen advised clients to participate in inappropriate investment schemes beyond their risk tolerances, including leveraged investment schemes and that he obtained loans for the applicants from financial institutions by mis-representing their factual circumstances.
Allen was registered with the commission from January 1993 to September 2007 and worked as a mutual fund salesperson with Keybase Financial Group in Truro for six months in 2007.
