Convictions of executives upheld in historic Nova Scotia fraud case

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Two executives once referred to by a judge as the mastermind and enforcer of a multimillion-dollar stock market scheme were jailed this week as Nova Scotia's highest court upheld their convictions.

Daniel Potter, the former chief executive of technology firm Knowledge House, and former lawyer Blois Colpitts were found guilty in March 2018 of conspiracy to manipulate the firm's share price and carrying out fraud in the securities market.

They were sentenced in July of that year but have been out on bail since shortly after their sentencing, awaiting the appeal result of one the longest and most complex prosecutions of white-collar crime in the province's history.

Potter and Colpitts reported to a prison on Tuesday at 1 p.m., the day before the release of the appeal decision, as required under their bail conditions.

Crown and defence lawyers confirmed their incarceration is now underway, more than 18 years after the e-learning company's dramatic collapse.

A unanimous decision dated Tuesday by three Nova Scotia Court of Appeal justices found the trial judge didn't err in determining the two men were responsible ``for the vast majority'' of legal delays in the case.