Vadim Tsatskin Pleads Guilty to a Quasi Criminal Charge in Ontario Court of Justice

TORONTO – The Ontario Securities Commission (OSC) announced today that Vadim Tsatskin pled guilty on April 4, 2011 to one count of fraud contrary to section 126.1 of the Securities Act (Ontario) in the Ontario Court of Justice before Mr. Justice Bigelow.

Mr. Tsatskin was charged in relation to his role with a company known as Global Energy Group Limited, which operated an unregistered securities sales office trading units of limited partnerships called New Gold LLP (“New Gold Securities”) to members of the public. Mr. Tsatskin was one of the persons controlling the operations of Global Energy in Ontario.

OSC Staff allege that between June, 2007 and June, 2008 approximately $14.75 million (U.S.) worth of New Gold Securities were sold to members of the public, the majority of whom lived in Western Canada. In his plea, Mr. Tsatskin admitted that the New Gold Securities were fraudulently represented to constitute ownership interests in Kentucky oil and gas leases.

This is the first finding of guilt for fraud in quasi-criminal proceedings brought by the OSC before the Ontario Court of Justice.

OSC Staff have requested that the Court impose a three and a half year term of imprisonment in this case. In Court, counsel for Mr. Tsatskin submitted that a three year term of imprisonment would be appropriate.

Sentencing for Mr. Tsatskin in this matter is scheduled to take place on November 24, 2011 at 10:00 a.m. in Courtroom #112 at Old City Hall, 60 Queen Street West in Toronto, Ontario.

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. Cease trade orders prohibit individuals or companies from trading in securities. Investors are urged to check the registration of any person or company offering an investment opportunity and to review the OSC investor materials available at www.osc.ca.

 

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