The Ontario Securities Commission laid 12 charges against Weizhen Tang, Oversea Chinese Fund Limited Partnership and Weizhen Tang & Associates on Wednesday.

The defendants are charged with contravening Ontario securities law by committing: securities fraud contrary to section 126.1 of the Ontario Securities Act; unregistered trading in securities, contrary to section 25 of the Act; Illegal distributions of securities, contrary to section 53 of the Act; and Making prohibited undertakings with the intention of effecting trades in securities, contrary to section 38 of the Act.

The OSC alleges that at least $40 million was invested in Oversea Chinese Fund LP by more than 100 investors, including residents of Ontario.

The charges are being brought before the Ontario Court of Justice, pursuant to the Ontario Provincial Offences Act. Each offence, on conviction, carries a maximum fine of not more than $5 million or a period of incarceration of five years less a day, or both.

The defendants have been summoned to appear at Toronto’s Old City Hall Courthouse on 60 Queen St. W., in Courtroom 111 at 9 a.m. on June 24.

The defendants are already subject to temporary cease-trade orders by the OSC. These orders prohibit trading of Oversea Chinese Fund LP securities and prohibit the defendants from trading in all securities.

Additionally, the OSC froze the assets in the defendants’ trading accounts on March 18. This order has been continued by order of the Ontario Superior Court of Justice.

The OSC is working with the U.S. Securities and Exchange Commission in the ongoing investigation of this matter.