The Ontario Securities Commission (OSC) has agreed to permanently ban a convicted fraudster, and ordered him to return $550,000 he obtained through advance fee schemes.
The OSC said Friday it has ordered sanctions against Michael Chomica, who pled guilty earlier this year to three counts of securities fraud. Following that plea, Chomica was sentenced to 18 months in jail for the first count, and to two years for each of the second and third counts, to be served concurrently, by the Ontario Court of Justice. (See Investment Executive, Securities fraudster pleads guilty, March 14, 2013.)
The commission used the fraud conviction as the basis for its own sanctions against Chomica, and agreed not to pursue its other allegations against him.
Chomica and OSC staff agreed to a statement of facts and made a joint submission on sanctions that will see him permanently banned from trading, registration, and serving as a director or officer.
He also faces an order to disgorge the $550,000 he obtained through his his participation in advance fee frauds, and he agreed to forfeit the $2,000 discovered during a search of his residence.
“Having reviewed the submissions of staff and Chomica and having heard the oral submissions of the parties, I found that Chomica’s fraudulent misconduct that led to the conviction required strong sanctions to be imposed,” said the OSC panel in its reasons, adding that the agreed sanctions are “appropriate and proportional to the circumstances”.
Earlier this year, the OSC settled with two others accused in the case. (See Investment Executive, OSC bans fraudster’s sister, August 7, 2013 and Investment Executive, Ex advisor banned over advance fee scheme, July 19, 2013.)