Securities regulators say that a Toronto man engaged in unregistered trading and illegal distribution when his firm raised about $90 million from investors by selling unregistered securities.
The Ontario Securities Commission (OSC) brought allegations Monday against Eric Inspektor, president and CEO of the Kaptor Group, which includes Kaptor Financial Inc., 2025610 Ontario Ltd., CarCap. Inc., and CarCap Auto Finance Inc.
The regulator says that the firm raised about $90 million from investors between 2005 and 2011 through the sale of various unregistered securities, and that about $38 million of that total is still owed to investors. “The most significant trading and capital raising activity of the Kaptor Group occurred in conjunction with the CarCap Companies, which provided sub-prime car lease financing and subprime auto loans,” it notes.
The commission is alleging that Inspektor traded without registration or an exemption; traded in securities of the Kaptor Group without filing a prospectus; and that as the firms’ officer and director he authorized their violations of securities law. The allegations have not been proven. A hearing has been set for April 15 to consider the allegations.