Rohit Kumar

Following a finding that the respondents perpetrated a securities fraud by misapplying $10 million in investor funds raised for a real estate project, the Capital Markets Tribunal determined the appropriate sanctions.

The Tribunal ordered permanent market participation bans with a limited trading carve-out for the individual respondent, disgorgement of $7.63 million, administrative penalties of $500,000 per respondent, and costs of $206,769.34.

Staff of the Ontario Securities Commission alleged that Steer Technologies Inc. published misleading news releases regarding its COVID-19 contact-tracing platform and failed to correct forward-looking information.

The individual respondents admitted to failing to ensure the accuracy of the releases and authorizing a relationship with a company publishing biased promotional articles.

The Capital Markets Tribunal approved the settlement agreement, finding the agreed sanctions, including financial payments, governance reviews, and director bans, achieved specific and general deterrence and were in the public interest.

The respondents raised $10 million from investors through secured debentures, representing that the funds would be used exclusively to finance a specific real estate project (Bayview Creek).

Instead, the respondents diverted approximately $3.39 million of the proceeds back to the corporate respondent and to other real estate projects controlled by the individual respondent.

The Capital Markets Tribunal found that the respondents engaged in a course of conduct that they knew perpetrated a fraud on investors, contrary to s. 126.1(1)(b) of the Securities Act.