The Ontario Securities Commission (OSC) has handed down a 10-year ban, along with ordering disgorgement and a $25,000 penalty against a man it found participated in unregistered trading and an illegal distribution.
The OSC announced Wednesday that it has approved a settlement agreement with Tyrone Constantine Phipps and Onix International Inc. concerning allegations that they improperly raised funds from investors to fund a business that would market and distribute encryption stick software.
Under the settlement, Phipps is banned from the markets for 10 years, must pay $232,000 in disgorgement and a $25,000 penalty. Onix International is also permanently cease traded.
According to the settlement, Phipps and Onix raised approximately $668,000 from 38 investors between March and December 2009 through the sale of royalty units that would entitle investors to share in the companies’ revenues. However, the units were not qualified by prospectus and they weren’t registered to trade in them. The settlement notes that these violations constitute conduct contrary to the public interest.