The Ontario Securities Commission (OSC) has ordered a $1 million in monetary sanctions, and a permanent market ban, against a man that it found participated in an advance fee scam.
In its decision handed down last week, the OSC ordered that David Paul Pelcowitz must pay an administrative penalty of $300,000, over $600,000 in disgorgement, and $100,000 in costs. It also ordered that he be permanently ban from the markets.
The penalties follow joint submissions from Pelcowitz and OSC staff on sanctions, which the commission found “was appropriate and proportionate” to the findings made against him after a hearing earlier this year.
Following that hearing, the OSC ruled that Pelcowitz and IMG International Inc. (IMG) committed fraud; facilitated unregistered trading; and, acted contrary to the public interest.
IMG was also permanently banned from the markets, and it was found jointly liable for the disgorgement order.
In the case, OSC staff claimed that between August 14, 2008 and June 11, 2009, individuals identifying themselves as representatives of Nest Acquisitions and Mergers (Nest A&M) and IMG solicited investors as part of the advance fee scheme.
Ultimately, the commission found that IMG and Pelcowitz had violated securities laws; but it dismissed the charges against Nest A&M, and an individual going by the name, Michael Smith, since OSC staff could not prove that they exist.
Earlier, the OSC approved a settlement with another person accused in the scheme, and dropped its allegations against a fourth person.