Abraham Herbert Grossman and Hanoch Ulfan Each Sentenced to 21 Months in Jail for Breaching Ontario Securities Act

TORONTO – Justice Sparrow of the Ontario Court of Justice today sentenced Abraham Herbert Grossman and Hanoch Ulfan each to 21 months in jail and two years of probation for breaches of the Securities Act (Ontario) (the Act). Under the terms of the probation orders, Mr. Grossman and Mr. Ulfan are prohibited from trading in securities for a two-year period and are to report monthly to a probation officer. Maitland Capital Inc. (Maitland) was also fined $1 million for breaches of the Act.

On March 24, 2011, following a trial pursuant to the quasi-criminal prosecution provisions of the Act, Justice Sparrow found Mr. Grossman and Mr. Ulfan guilty of running a “boiler room” operation, which raised approximately $5.5 million by selling Maitland shares through high pressure telephone sales tactics to investors throughout Canada and in other countries.

Mr. Grossman and Mr. Ulfan were each sentenced to a total of 21 months in jail for trading in securities without registration, trading in securities without a prospectus, giving prohibited undertakings regarding the future value of Maitland shares, making prohibited representations regarding Maitland being listed on a stock exchange in the future and making misleading statements in a document filed with the Ontario Securities Commission (OSC). As directors and officers of Maitland, Mr. Grossman and Mr. Ulfan were sentenced on a further four counts of breaching the Act.

Maitland was sentenced to a fine of $1 million for trading in securities without registration, trading in securities without a prospectus, giving prohibited undertakings regarding the future value of Maitland Capital shares, making prohibited representations regarding Maitland Capital Inc. listing on a stock exchange in the future and making misleading statements.

Mr. Grossman, Mr. Ulfan, Maitland and others continue to be subject to cease trade orders originally issued by the OSC on January 24, 2006. These cease trade orders and other documents related to this matter are available on the OSC website at www.osc.ca.

The mandate of the OSC is to provide protection to investors from unfair, improper or fraudulent practices and to foster fair and efficient capital markets and confidence in capital markets. Investors are urged to check the registration of any person or company offering an investment opportunity and to review the OSC’s investor materials available at www.osc.ca.

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