The Ontario Securities Commission has ordered a group of Ontario residents to stop selling offshore investment products after discovering more than $23 million has been raised from members of the public.

In the order issued December 7, the OSC said it has not completed an investigation of seven individuals and five companies, but felt it was in the public interest to make a temporary order requiring them to stop illegal distributions of securities.

“The commission is of the opinion that it is in the public interest to make this order and that the time required to conclude a hearing could be prejudicial to the public interest,” the order stated.

The order applies to seven Ontario residents: Peter Sabourin of Huntsville, Jeffrey Haver of Richmond, Greg Irwin of Pickering, Patrick Keaveney of Toronto, Shane Smith and Andrew Lloyd of Peterborough, and Sandra Delahaye of Oakville.

In the order, the OSC alleges they were involved with selling $23.3 million worth of securities involving seven companies related to Sabourin and Sun Inc. and Camdeton Trading Inc.

The investment schemes have been described to investors as a “letter of credit rental program”, a “currency exchange program” and a “trading currency contract” among other names, the OSC said.

The commission said promotional materials promise investors they will earn a fixed return of between 15% and 22%. The investments are “locked in” for a fixed period, and investors are told their principal and their returns are “guaranteed.”

The OSC said the securities are being sold without registration and without issuing a prospectus, which is contrary to the Ontario Securities Act.

The commission will hold a hearing December 20 to consider extending the temporary order, which was approved December 7.