The Ontario Securities Commission (OSC) has imposed sanctions on a couple of men for their role in illegal distributions and unregistered trading, reciprocating penalties handed down by the British Columbia Securities Commission (BCSC).

According to the OSC’s decision in the case, a BCSC hearing panel found that Frederick Lawrence Marlatt (aka Frederick Lawrence Mitschele) and Michael Wallance Minor, “breached two cornerstones of the regulatory framework” in B.C. by engaging in unregistered trading and illegal distribution of securities. It notes that they raised approximately $3.6 million from 272 investors by trading and distributing unregistered securities, relying on exemptions that largely weren’t available to them.

As a result, the BCSC imposed several sanctions against them, including five-year bans from trading, acting as a director or officer of an issuer, carrying out investor relations work, or acting in a management or consultative capacity in connection with activities in the securities market.

The OSC ruled that a protective order was also warranted against them in Ontario, and that the commission should exercise its discretion to impose sanctions consistent with the BCSC, in order to “protect Ontario investors and Ontario capital markets from similar misconduct”.

So, the OSC imposed its own trading and director and officer bans; which run until July 18, 2018 (five years from the original BCSC penalty decision). They did not appear at the OSC hearing to oppose the allegations.