Kevin Carmichael sentenced to four years for defrauding Strike Holdings investors

TORONTO – The Ontario Securities Commission (OSC) announces that Mr. Kevin Carmichael has been sentenced to four years in jail for defrauding investors in Strike Holdings Inc., as well as making misleading statements to investors and trading securities without registration. In addition to the jail term, Mr. Carmichael was also ordered to pay restitution to harmed investors totaling $22.7 million.

Mr. Carmichael was a director and officer of both Strike Holdings and a related company, KM Strike Management (KMSM). He entered a guilty plea in the Ontario Court of Justice on January 8, 2025.

“Mr. Carmichael’s actions had a profound impact on investors, creating stress and hardship in the lives of hard-working people who put their trust in him,” said Bonnie Lysyk, Executive Vice President, Enforcement, at the OSC. “Misleading investors through falsified reports is illegal, and the OSC will continue to take action to protect investors, and the integrity of our capital markets. We also want to thank the Halton Region Police Service for their support on this case.”

Mr. Carmichael was co-accused with Michael Aonso, the other director and officer of Strike Holdings and KMSM. Mr. Carmichael and Mr. Aonso were charged in March 2022. Mr. Aonso pleaded guilty in November 2024 to unregistered trading and illegal distribution of securities. Mr. Aonso will appear in the Ontario Court of Justice on September 23, 2025, for sentencing.

This case was brought by the OSC’s Criminal Investigations & Prosecutions team, which is part of the Enforcement Division of the OSC. They investigate securities-related frauds, market manipulation, and related misconduct, including the investigation of repeat offenders and those who breach Capital Markets Tribunal or court orders and bans. Their primary objective is to protect investors and further enhance confidence in the Canadian capital markets through effective enforcement. To do this, they often partner and collaborate with other law enforcement agencies and police forces. The OSC gratefully acknowledges the investigative support of the Halton Regional Police Service in this matter.

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 https://www.osc.ca.

Notes to Editors:

• In June 2019, knowing Strike’s TD accounts held only about USD $230,000, Carmichael approached TD Bank and claimed Strike had USD $97M on deposit. He provided forged statements to TD Bank in support of the claim that TD had lost the funds through fraud or error. In early 2021, Strike raised over $900,000 by issuing a debenture to fund litigation against TD Bank to “recover” the $97M. Carmichael participated in the debenture raise knowing he had forged the documents on which the proposed litigation was based.

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