The Ontario Securities Commission (OSC) Tuesday announced enforcement proceedings in another alleged illegal distribution fraud.

The OSC said today that it will hold a hearing on April 17 to consider allegations against Portfolio Capital Inc., its president, David Rogerson, and his wife, Amy Hanna-Rogerson; none of whom he ever been registered with the commission. The allegations have not been proven.

In the case, the OSC alleges that Portfolio Capital, Rogerson, and Hanna-Rogerson, engaged in fraudulent conduct by making misleading statements to investors about: the business of a company they sold shares in, PlusPetro Inc. (Panama); the future value of the PlusPetro Panama shares; and, the use of their funds.

The commission’s allegations charge that Portfolio Capital claimed to be an investment banking firm, but it was not registered and its mailing address was a UPS box. It says that the firm and the Rogersons raised almost US$1 million, and another C$544,000 from over 200 investors to invest in shares of PlusPetro Panama, which allegedly had the rights to a break-through oil additive technology; and they were promised it would soon be listed on the TSX.

However, no prospectus was filed for the company, and no exemptions were available, the OSC alleges; making these trades an illegal distribution. It says investors were told that their funds would be used for the start-up operations of PlusPetro Panama, but that instead they were used for personal expenditures, including, among other things, food and alcohol, pet care and property expenses.

Moreover, the company never carried on any legitimate business, and there’s no evidence that its break-through technology actually exists, the OSC maintains. It will be seeking trading and registration bans, among other possible sanctions.