OSC Charges Stephan Katmarian with Securities Act Offences

TORONTO – The Ontario Securities Commission (OSC) announced that Stephan Katmarian, Chief Executive Officer and Chief Operating Officer of Peblik Inc. (Peblik), and resident of Mississauga, Ontario, has been charged with offences under the Securities Act (Ontario).

Mr. Katmarian was charged with the following offences: fraud, trading in securities without registration, trading in securities without a prospectus, and making a statement in information submitted to the OSC that was misleading or untrue.

These allegations relate to Mr. Katmarian’s role as the directing mind of Peblik, when the company promoted an initial coin offering of a crypto token called ‘Peblik Token.’ Between January 1, 2018 and August 8, 2019, Peblik raised approximately $550,000 from at least 28 investors in Ontario, despite previously stating to the OSC that no sales had been made to Ontario residents. Further, at Katmarian’s direction, the company represented to investors that the value of the Peblik Token was backed by Peblik’s ownership interest in a USD $4.8 billion mineral resource deposit in Canada. This statement regarding Peblik’s ownership interest was false. 

The accused is scheduled to appear in court on this matter on May 12, 2021 at 11:00 AM in Courtroom #112 at Old City Hall Provincial Court, 60 Queen Street West, Toronto, Ontario.

Any investors who were solicited or who invested in Peblik should contact the OSC’s Contact Centre at 1-877-785-1555 (Toll Free) or [email protected].  

This investigation was conducted by staff within OSC Enforcement that investigate quasi-criminal and criminal offences related to securities, including the investigation of alleged recidivists. The primary objective is to protect investors and further enhance confidence in the Canadian capital markets through effective enforcement. 

Quasi-criminal charges are prosecuted by the OSC. Charges laid under the Criminal Code are prosecuted by the Ministry of the Attorney General.

To date, OSC Enforcement has pursued 49 quasi-criminal and criminal matters involving 70 accused.

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 http://www.osc.ca.

***Update as of April X, 2024*** On March 20, 2024, Justice Beverly Brown of the Ontario Court of Justice in Toronto found Mr. Katmarian not guilty of all four counts before the court. On April X, 2024, the OSC filed a Notice of Appeal under section 116 of the Provincial Offences Act. The relief sought is that the appeal should be allowed, and convictions entered or, in the alternative, a new trial should be ordered.

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