Ontario securities regulators have imposed a seven-year trading ban on a woman who traded without registration as part of her involvement in an investment fraud scheme.

The Ontario Securities Commission (OSC) said Monday that it has entered a settlement agreement with Jenifer Brekelmans, who admitted to trading and advising in securities without registration as part of her work for a firm known as Bunting & Waddington Inc.

Brekelmans agreed to seven-year trading, registration, and director and officer bans. She also agreed to disgorge the $1,500 she obtained as a result of her non-compliance with Ontario securities law.

According to the settlement, Brekelmans, who has never been registered, began working for the firm, which was controlled by Arvind Sanmugam, back in 2006. It says that the firm purported to provide market commentary, but that Sanmugam also directed investors to open online brokerage accounts and then exercised trading control over those accounts, sometimes through Brekelmans.

In September 2012, Sanmugam pleaded guilty to, and was convicted of, three counts of fraud over $5,000. He was sentenced to five years in prison and to pay restitution of over $1 million.

The OSC settlement notes that Brekelmans co-operated with the police and prosecutors on the case. Additionally, it says, she was completely unsophisticated and had no experience in the capital markets. Moreover, it reports that her parents and other family members invested in the Bunting & Waddington scheme.

“Brekelmans was duped into believing that Sanmugam was the experienced and successful investor he portrayed himself to be,” it says, adding that her family have lost virtually all of the money they invested with Sanmugam.

It also notes that Sanmugam “exercised complete control over every aspect of Brekelmans’ life, including her living arrangements”, and that she felt powerless to extricate herself from his control. Additionally, it says she “was paid sporadically and made little profit from her activities.”