The Ontario Securities Commission held a hearing regarding allegations that the respondents participated in an illegal distribution of shares in four private companies. The scheme involved convincing individuals to access locked-in retirement savings plans by transferring funds to purchase shares in the private companies, after which the respondents would lend a portion of the invested amount back to the investors. The Commission found that Cornwall, Simpson, and Xavier participated in an illegal distribution of securities without a prospectus or available exemption. Xavier, a registrant, was also found to have failed his know-your-client and suitability obligations and failed to process trades through his sponsoring dealer. All respondents, including Cook who provided qualification letters, were found to have engaged in conduct contrary to the public interest.
Citation: John Alexander Cornwall et al., 2007 ONSEC 18
Date: 2007-11-30
IN THE MATTER OF THE SECURITIES ACT [R.S.O. 1990, c. S.5](https://www.canlii.org/en/on/laws/stat/rso-1990-c-s5/latest/rso-1990-c-s5.html