A Calgary man has been charged with fraud in Ontario, amid allegations of unregistered trading and providing false account statements.
The Ontario Securities Commission (OSC) said Monday that Michael Lee Hughes and his company, Rivertree Financial Services Corp., have been charged with fraud over $5,000 and uttering a forged document, contrary to the Criminal Code.
The allegations have not been proven. The next court appearance for Hughes in the case is scheduled for Feb. 11 at the courthouse at Old City Hall in Toronto.
The OSC says that an investigation by the its Joint Serious Offences Team (JSOT) — its enforcement partnership with the RCMP Financial Crime program and the OPP Anti-Rackets Branch — found that Hughes, a former resident of Toronto, provided forged account statements to an Ontario resident in connection with a portfolio of investment securities that Hughes was managing for the unnamed investor. Neither Hughes, nor Rivertree, are registered with the OSC to trade or advise in securities, it notes.
“It is further alleged that the false account statements minimized the significant investment losses incurred by Hughes in managing his client’s portfolio, while Hughes and Rivertree continued to charge the client fees for investment management services,” the OSC says.