An Ontario court Tuesday sentenced two men to a total of 27 months in jail for fraud, trading in securities without registration and trading in securities without a prospectus.

Abel Da Silva and Eric O’Brien were sentenced to 18 months in jail for their roles in running a boiler room operation involving shares of Shallow Oil and Gas Inc. Consecutive sentences of nine months each were also imposed for breaches of temporary cease trade orders made by the Ontario Securities Commission. Da Silva was also sentenced to one day in jail for each of two counts of misleading OSC staff, to be served concurrently.

“This case demonstrates that we will go after significant jail sentences for individuals who abuse Ontario investors and treat Commission orders with impunity,” said Tom Atkinson, OSC director, enforcement, in a release.

The sentencing yesterday follows the guilty finding on May 18, 2011 for Da Silva, O’Brien, Abraham Grossman and Shallow Oil and Gas Inc. Each were found guilty on several counts of breaching the securities laws including fraud, in relation to the boiler room operation.

The OSC initially laid quasi-criminal charges against Da Silva, O’Brien, Grossman and Shallow Oil and Gas Inc. on June 12, 2008. The boiler room operation started in the fall of 2007 and was terminated in January 2008 when the OSC executed a search warrant at the Shallow Oil and Gas Inc. office in Markham, Ont. At the time of the raid, the defendants were actively soliciting investors across Canada using high pressure sales tactics along with false and misleading information. They had raised approximately $250,000 before the OSC shut down the operation.

Da Silva, O’Brien and Grossman continue to be subject to a cease trade order prohibiting them from trading in securities.