Douglas DeBoer sentenced to jail for violations of Securities Act Offences
For Immediate Release OSC Enforcement Before the Court
TORONTO – The Ontario Securities Commission (OSC) announced today that Douglas DeBoer of Ancaster, Ontario, has been sentenced to three years in jail. Mr. DeBoer was sentenced on December 14, 2021 by Justice A. Camara of the Ontario Court of Justice in Hamilton.
On August 19, 2021, Mr. DeBoer pled guilty to two counts of fraud contrary to section 126.1(1)(b) and one count of violating an OSC trading ban contrary to section 122.(1)(c) of the Securities Act.
The convictions relate to the sale of more than $7 million worth of securities in Hockley Energy and Rocky Point Energy to investors between June 1, 2011 and December 31, 2013. In his plea to the court, Mr. DeBoer admitted that he perpetrated fraud on investors by facilitating and promoting the sale of these investments. Further, Mr. DeBoer admitted that he directed significant sums of investor money to purposes other than the extraction of oil – which was what investors were promised – including the disbursement of funds to his family and close associates.
“Incarceration is necessary to achieve the purpose of the [Securities] Act when, like in this case, the acts committed strike at the heart of the Securities Act and for which those acts caused significant harm to members of our community,” said Justice A. Camara in her reasons.
The OSC would like to thank the An Garda Síochána (Ireland’s National Police Service) for assistance with this investigation.
This investigation was conducted by a team within the OSC Enforcement branch that investigates quasi-criminal and criminal offences related to securities, including the investigation of alleged recidivists. Their primary objective is to protect investors and further enhance confidence in the Canadian capital markets through effective enforcement.
To date, OSC Enforcement has pursued 56 quasi-criminal and criminal matters involving 80 accused.
Charges laid under the Securities Act (quasi-criminal) are prosecuted by the OSC. Charges laid under the Criminal Code are prosecuted by the Ministry of the Attorney General.
The mandate of the OSC is to provide protection to investors from unfair, improper or fraudulent practices, to foster fair, efficient and competitive capital markets and confidence in the capital markets, to foster capital formation, and to contribute to the stability of the financial system and the reduction of systemic risk. Investors are urged to check the registration of any persons or company offering an investment opportunity and to review the OSC investor materials available at http://www.osc.ca.
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