Sei-Jin Ki and Carlos DaSilva Convicted of Securities Act Offences
Pour diffusion immédiate OSC Enforcement Before the Court
TORONTO – The Ontario Securities Commission (OSC) today announced that Sei-Jin Ki of Toronto, Ontario and Carlos DaSilva of no fixed address have been convicted of quasi-criminal charges under the Securities Act (Ontario). Mr. Ki and Mr. DaSilva were convicted on December 13, 2021 by Justice M. McLeod in the Ontario Court of Justice in Toronto.
Mr. Ki was convicted of the following offences under the Securities Act: one count of fraud contrary to section 126.1(1)(b), one count of trading of securities without registration contrary to section 25(1), and one count of trading in securities without a prospectus contrary to section 53(1) of the Securities Act.
Mr. DaSilva was convicted in absentia of the same charges as Mr. Ki. In addition, Mr. DaSilva was convicted under section 122(1)(c) of the Securities Act for violating a permanent trading ban order that was issued against him by the OSC in December 2008.
The convictions relate to the sale of more than $130,000 worth of securities in Toronto Scientific Medtech Inc. (“TSM”) to Ontario investors between May 1, 2016 and June 30, 2017. The court found that Mr. Ki and Mr. DaSilva sold fraudulent shares in TSM, made material misrepresentation regarding investments in TSM and that a significant percentage of the money raised was used for the personal benefit of Mr. Ki and Mr. DaSilva.
Another individual involved in this scheme, Kamal Singh (“Bobby”) Athwal, pled guilty to one count of distributing securities without a prospectus contrary to section 53(1) of the Securities Act on March 24, 2021.
Mr. Ki and Mr. DaSilva will next appear in the Ontario Court of Justice in Toronto on February 22, 2022 at 10:00 am, at which time sentencing submissions will be heard.
This investigation, and prosecution, 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 of this team 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 56 quasi-criminal and criminal matters involving 80 accused.
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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