Three men charged for stock fraud of Knowledge House Publishing, Halifax

Following an investigation by the Nova Scotia RCMP Commercial Crime Section, fraud affecting the public market charges have been filed in the Supreme Court of Nova Scotia against three people. The charges result from a long-term investigation into the company formerly known as Knowledge House Incorporated.

The investigation into Knowledge House Inc. began after the RCMP received a complaint from the Nova Scotia Securities Commission. As a result of the complaint, the Commercial Crime Section of the RCMP launched an investigation into the activities and trading of the company.

RCMP Investigators from the Nova Scotia Commercial Crime Section worked with assistance from the Integrated Market Enforcement Team. (IMET)

The Halifax-based Knowledge House Publishing began publicly trading on the Montreal Stock Exchange in 1998. Knowledge House Publishing changed its name to Knowledge House Inc. on the 3rd day of November, 1999 and began publicly trading on the Toronto Stock Exchange under the trade symbol KHI on the 6th day of December, 1999. The company developed technology based learning programs and solutions. The fraud was alleged to have been committed between the 1st day of January, 2000, and the 13th day of September, 2001.

It is alleged that Daniel Frederick POTTER, Robert Blois COLPITTS and Bruce Elliott CLARKE conspired to affect the public market of Knowledge House Inc. shares.

As a result of the investigation the following charges have been laid:

Daniel Frederick POTTER
– One charge of Conspiracy to commit Fraud affecting the public market contrary to Section 380(2) and 465(1)(c) of the Criminal Code of Canada;
– One charge of Fraud affecting the public market contrary to Section
380(2) of the Criminal Code of Canada;
– Two charges of Fraud Over $5000 contrary to Section 380(1)(a) of the Criminal Code of Canada;

Robert Blois COLPITTS
– One charge of Conspiracy to commit Fraud affecting the public market contrary to Section 380(2) and 465(1)(c) of the Criminal Code of Canada;
– One charge of Fraud affecting the public market contrary to Section
380(2) of the Criminal Code of Canada;
– Two charges of Fraud Over $5000 contrary to Section 380(1)(a) of the Criminal Code of Canada;

Bruce Elliott CLARKE
– One charge of Conspiracy to commit Fraud affecting the public market contrary to Section 380(2) and 465(1)(c) of the Criminal Code of Canada;
– One charge of Fraud affect the public market contrary to Section
380(2) of the Criminal Code of Canada;
– Three charges of Fraud Over $5000 contrary to Section 380(1)(a) of the Criminal Code of Canada.

The three will appear in the Supreme Court of Nova Scotia on April 28th at 9:00 a.m. to face the charges.