The Ontario Securities Commission (OSC) has ordered market bans, over $3 million is disgorgement and almost $1 million in penalties against various players in an illegal distribution case.
On Wednesday, the OSC issued its decision on sanctions in the case of Rezwealth Financial Services Inc., Tiffin Financial Corp., a couple of numbered companies, and several individuals, (Pamela and Justin Ramoutar, Daniel Tiffin, Sylvan Blackett and Willoughby Smith), who had earlier been found to have violated securities laws, including trading without registration, and engaging in an illegal distribution, among other breaches, when they participated in investment schemes that raised almost $6 million from investors, ostensibly to engage in foreign exchange trading.
The commission ordered that Blackett and the Ramoutars should be permanently prohibited, and that Smith and Tiffin should each be banned for five years, given their involvement in the scheme.
It also ordered more than $3 million in disgorgement against the respondents in the case, with almost $1.5 million of that ordered against Blackett and one of the numbered companies, noting, “The conduct of the respondents, particularly the fraudulent activities of Blackett, 215 Inc. and the Rezwealth respondents, was serious and resulted in substantial harm to investors. I find it unlikely that investors in the Blackett investments and/or the Rezwealth investments who suffered losses will be able to obtain redress.”
Blackett also received the heftiest monetary penalty, as he was ordered to pay $500,000. Ms. Ramoutar was ordered to pay $250,000, Mr. Ramoutar to pay $150,000, and the others received $25,000 penalties; which, the commission said, “are commensurate with each respondent’s failures to comply with Ontario securities law.”
Additionally, the OSC ordered a total of $250,000 in costs against them.