An Ontario Securities Commission (OSC) panel has ordered about $1.4 million in disgorgement, penalties and costs, in an illegal trading scheme.
In a hearing last year, the panel found that Empire Consulting Inc. and Desmond Chambers distributed securities without a prospectus, traded and advised without registration or an exemption, and perpetrated a fraud on investors after raising almost $1.5 million from 26 investors in an illegal trading scheme.
On Friday, the OSC panel issued its decision on sanctions, ordering permanent trading, registration, and director and officer bans, an administrative penalty of $300,000, $859,555 in disgorgement, and $235,502 in costs.
The respondents in the case didn’t appear at either the original hearing, or the penalty hearing. Although, the decision notes that Chambers has made an attempt to communicate his remorse by apologizing to investors who lost money in his scheme.
“The authenticity of Chambers’ apology, however, is offset by his refusal to attend these proceedings and take responsibility for his actions,” it says, noting that his apology blames others for his own conduct.
It also notes that he has managed to return almost $700,000 to his investors.