How Canadian regulators deal with Boiler Room Fraud

The Ontario Securities Commission (OSC) works to protect interests of investors; to safeguard fair, efficient and orderly markets by creating and monitoring compliance with the regulations governing the securities industry within Ontario. Do you know how Canadian regulators deal with Boiler Room Fraud?

3 August, AtoZForex – As a part of its activity, the OSC also makes rules with the purpose to prevent misconduct and fraud, while maintaining the integrity of the markets. Today the OSC has announced that Sydney Klein from Thornhill, Ontario was charged with the Boiler Room Fraud. Canadian regulators deal with Boiler Room Fraud strictly: Klein is sentenced to two years of probation with certain conditions at the Ontario Court of Justice.

Canadian regulators deal with Boiler Room Fraud: details

In November of the previous year, an investigation revealed that Klein was operating a boiler room fraud scheme. He was using dormant shareholder lists and make fraudulent solicitations to potential investors by phone. OSC’s Joint Serious Offences Team (JSOT) was conducting the investigation. As a result, Sydney Klein pleaded guilty to one count of defrauding the public. This action did breach the Section 380 (1)(b) of the Criminal Code.

JSOT was initially established by the Ontario Securities Commission as enforcement cooperation between the Royal Canadian Mounted Police Financial Crime program, the OSC and the Ontario Provincial Police Anti-Rackets Branch. The primary objective of the partnership is to protect the investors and to enhance confidence in the capital markets of Canada through the effective enforcement measures. Canadian regulators deal with Boiler Room Fraud and all other types of scams through collaborative investigation of serious fraudulent activities using the provisions of the Securities Act or the Criminal Code.

What is next for Klein?

As Canadian regulators deal with Boiler Room Fraud, currently Klein’s conditions require him to stop all his trading activity in securities. Moreover, he is required to resign and not to act in any officer or director positions within in any corporations registered in Canada. He also must refrain from making calls to any place in or outside Canada with the purpose of trading any security. The AtoZForex Team has reached out to the OSC for the comments on the case. The request is still pending.

The Canadian regulator urges all potential investors to check the registration of any individuals or companies who offer investment opportunities to them and review the OSC investor material on the watchdog’s website.

See also: OSC MaxOptions Regulator warning

Think we missed something? Let us know in the comment section below?

    Share Your Opinion, Write a Comment