The Ontario Securities Commission (OSC) has handed down a couple of decisions against individuals that were involved with alleged boiler room broker Maitland Capital Ltd.
The firm was fined $1 million in 2011, after a quasi-criminal hearing that also saw its two founders sentenced to 21 months in jail. The OSC charged that Maitland was a boiler room that raised approximately $5.5 million from 1,200 investors across Canada and in other countries.
Pair sentenced to 21 months for running boiler room: OSC
On Monday, the OSC imposed a three-year trading ban against Steven Lanys, who worked as a salesperson for Maitland.
At a hearing in February 2012, in an agreed statement of facts with the regulator, Lanys admitted to having traded in securities of Maitland without a registration exemption or a prospectus, and for making prohibited representations to Maitland investors.
In addition to the trading ban, the OSC ordered that Lanys pay disgorgement of $91,407, among other things.
The OSC also ruled that another Maitland employee, Tom Mezinski, contravened Ontario securities law by trading without registration, with a prospectus, and made misleading representations to investors. However, Mezinski did not appear at the hearing and was not represented by counsel. He still faces a separate sanctions hearing, which will be held at a later date to determine sanctions and costs.