The Ontario Securities Commission (OSC) reports that a salesman has been sentenced to nine months in jail after pleading guilty to one count of fraud and one count of breaching an OSC cease trade order.
The OSC announced that Justice William Gorewich of the Ontario Court of Justice has sentenced Howard Rash to nine months in jail and two years of probation, after he admitted to fraudulently selling units in partnerships of New Gold LLP to the public, between September of 2007 and June of 2008.
At the time, Rash was subject to a cease trade order (CTO) made by the OSC in July 2007. The CTO was imposed after the OSC found that Rash traded in convertible debentures of a company called Momentas Corp. without registration. He was permanently banned from trading as a result of that case. He was also ordered to disgorge $1.3 million, and to pay an administrative penalty of $50,000 among other sanctions. (See Investment Executive, ASC issues trading bans against Momentas Corp. and directors, February 9, 2009).
The OSC says that at least US$14.75 million of New Gold LLP securities were sold by Rash and others working for a firm called Global Energy Group Ltd. It notes that Rash received over $300,000 in fraudulent commissions as a result. (See Investment Executive, OSC secures first conviction for fraud, April 5, 2011.)
Global Energy, the New Gold partnerships, Rash and others were also hit with temporary CTO from the OSC back in 2008, and that order has since been extended numerous times. The commission has since settled with various respondents involved with the case. Back in September, its temporary order against Rash in this case was extended until December 19, and a hearing to consider a further extension was set for December 17.