The accused pleaded guilty to two counts of violating section 122(1)(c) of the Ontario Securities Act.
The first violation involved entering into a joint venture agreement that qualified as an investment contract and security without being registered to trade in securities.
The second violation involved breaching a Cease Trade Order by entering into promissory note agreements while prohibited from trading in securities.
The accused, a former police officer, had promoted U.S. real estate properties to Canadian investors, making representations about turn-key investments and property management.
Many properties were in poor condition and promises were not fulfilled.
The court imposed fines, probation, community service, and restitution orders rather than a custodial sentence, finding the conduct closer to carelessness than deliberate fraud.
