The Ontario Securities Commission has permanently reprimanded a Cambridge, Ont. man for his role in a multimillion dollar investment scheme, fined him $750,000 and banned him from trading securities.
The OSC approved a settlement with Vincent Ciccone on Friday.
From April 2008 to June 2010, over $19 million in investor funds were deposited into bank accounts belonging to or controlled by Ciccone Group Inc. At the time, Ciccone was the sole officer and director of Ciccone Group. He was also the president and CEO of Medra Corp., which later changed its name to Cabo Catoche Corp.
According to the settlement agreement, the investor funds were raised from various illegal distributions of securities, including Ciccone Group promissory notes, Medra shares, units of Medra’s founding partners program and other investments.
Ciccone and Ciccone Group directed the investor funds to business ventures that Ciccone was involved in, to charities, or packaged the funds as loans to friends and associates in circumstances where there was little prospect of ever generating the returns of over 20% returns stated in the promissory notes that Ciccone and Ciccone Group sold to investors.
Ciccone Group was assigned into bankruptcy on Nov. 30, 2010, at which time it owed over $17 million to investors.
The settlement with the OSC permanently bans Ciccone from trading and acquiring securities, and from becoming or acting as a director or officer of any issuer, registrant or investment fund manager, or becoming or acting as a registrant, an investment fund manager or a promoter.
The OSC ordered Ciccone to pay an administrative penalty in the amount of $750,000 and $100,000 in costs. In addition he must disgorge to the commission the more than $15 million.