Michael Lee Hughes and Rivertree Financial Services Corporation charged criminally with fraud and uttering a forged document following investigation by OSC’s Joint Serious Offences Team

TORONTO – The Ontario Securities Commission announced today that Michael Lee Hughes of Calgary, Alberta and his company Rivertree Financial Services Corporation have been charged with alleged breaches of the Criminal Code of Canada following an investigation by the OSC’s Joint Serious Offences Team (JSOT).

Hughes and Rivertree have been charged with fraud over $5,000, contrary to section 380 of the Criminal Code and uttering a forged document, contrary to section 368 of the Criminal Code.

It is alleged that Hughes, who is a former Toronto resident, provided forged account statements to an Ontario resident for whom Hughes was managing a portfolio of investment securities through Rivertree. This fraudulent activity occurred during the period from 2008 through 2013.

It is further alleged that the false account statements minimized the significant investment losses incurred by Hughes in managing his client's portfolio, while Hughes and Rivertree continued to charge the client fees for investment management services.

Neither Hughes nor Rivertree are registered to advise or trade in securities with the OSC.

The next court appearance for Hughes in this matter is scheduled to take place February 11, 2015 at 9:00 a.m. in Courtroom # 111 at the Old City Hall - Ontario Court of Justice, 60 Queen Street West in Toronto, Ontario.

JSOT was established by the OSC as an enforcement partnership between the OSC, the Royal Canadian Mounted Police Financial Crime program and the Ontario Provincial Police Anti-Rackets Branch.  The primary objective of JSOT is to protect investors and further enhance confidence in the Canadian capital markets through effective enforcement.  This is accomplished through collaborative investigations of serious violations of the law using the provisions of the Securities Act or the Criminal Code of Canada. 

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 the capital markets.  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 www.osc.ca
 

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