David Fogel

The Ontario Securities Commission held a sanctions hearing regarding four respondents who acted as salespersons for Maitland Capital Ltd., a boiler room operation that fraudulently raised approximately $5.5 million from investors.

The respondents admitted to their involvement and cooperated with Staff.

The Commission found that the respondents breached the Securities Act by making prohibited representations to vulnerable investors.

To protect the public interest and deter future misconduct, the Commission ordered the respondents to cease trading in securities for three years (with limited RRSP exceptions), disgorge the full amount of their sales commissions totaling over $82,000, and permanently prohibited them from telephoning residences to trade securities.

Administrative penalties were not imposed on two respondents due to mitigating factors, including age and limited financial resources.