Former fund industry executive David Singh was sentenced to three and a half years in jail and ordered to pay $4.8 million in restitution after being convicted of fraud and other securities offences.
Last November, Singh — who formerly ran large fund dealer Fortune Financial Corp. and his own fund company, Infinity Funds Management Inc. — was convicted of one count of fraud, trading without registration and trading without a prospectus.
The convictions stemmed from the fraudulent sale of $5.5 million worth of securities in a pair of syndicated mortgage companies — Rockfort Mortgage Investment Corp. and Greenview Capital Mortgage Investment Corp. — between 2014 and 2018.
The court found that the money raised from investors wasn’t invested as promised.
The charges against Singh were brought following an investigation by the Ontario Securities Commission (OSC).
“The sentence imposed today sends a strong message that individuals who deceive investors and misappropriate their funds will be held accountable for their misconduct,” said Jeff Kehoe, director of enforcement at the OSC, in a release.