An Ontario woman has agreed to a lifetime ban and a $35,000 fine with the Ontario Securities Commission (OSC) for her role in an advance fee scheme.
The OSC announced Tueday that it has settled with Anna Hrynisak and Heritage Management Group concerning allegations that they used two Ontario-based bank accounts to receive and disburse funds obtained from the victims of a fraudulent ‘advance-fee’ scheme that targeted shareholders in the UK, Europe and Africa.
The settlement indicates that at least 10 shareholders sent a total of at least US$500,000 to the accounts in connection with the scheme between August 2009 and February 2010; and that Hrynisak carried out transactions in the accounts, including the disbursement of funds fraudulently obtained from investors, at the direction of others. The victims of the scam lost all of their money.
The OSC decision notes that Hrynisak was not involved in soliciting the shareholders. “However, Hrynisak knew or ought to have known that in carrying out transactions in the Heritage bank accounts… she was directly or indirectly engaging in a course of conduct relating to securities that perpetrated a fraud on the shareholders,” it says.
According to the settlement, they admit that they violated Ontario securities law, and the public interest, by trading without registration and engaging in fraudulent acts. And, they agree to lifetime trading, registration and director and officer bans, along with the fine. Hrynisak also consents to similar bans by other Canadian regulators.