The Ontario Securities Commission (OSC) has laid quasi-criminal charges against a man alleging that he engaged in a new fraud scheme while already under an OSC cease trade order.
The OSC said Friday that it has laid charges against Abraham Grossman, alleging that between October 2009 and February 2011, Grossman and his firm, the Strategic Gifting Group, operated a fraudulent share gifting scheme involving four Ontario charities.
The OSC charges that Grossman and Strategic Gifting brokered introductions between the charities and donors for a service fee amounting to 90% of the donation. They then issued shares of Dixon Perot & Champion Inc. Securities (DPC Securities) to the donors, which they valued at an inflated amount. A total of $332,620 was received by Strategic Gifting from the charities as a result of this scheme, it says.
Additionally, the OSC says that Grossman engaged in this scheme while he was prohibited from trading in securities by OSC orders, and while he was in the middle of two unrelated trading and fraud trials. In addition to this new fraud charge, Grossman is also charged with breaching the trading restrictions placed on him by the OSC.
The allegations have not been proven. The first appearance in the case is set for August 23 in a Newmarket, Ont. court.