The Ontario Securities Commission (OSC) is accusing two men of soliciting U.S. investors to their unregistered trading business.
The OSC announced allegations Wednesday against Ottawa resident, Steven Zetchus, his firm, Blackwood & Rose Inc., and Justin Kreller, who it says worked as a salesperson for the firm.
The OSC claims the conduct of the company and the two men was fraudulent and breached Ontario securities law. The allegations have not been proven, and a hearing has been set for Feb. 19.
In its allegations, the OSC charges that, between September and December 2012, the men and the firm held themselves out as being in the business of trading in securities and that they solicited U.S. investors to transfer funds to Blackwood to trade. However, it says they weren’t registered to trade, and that none of the money received from investors was traded for them.
In total, U.S. residents sent approximately US$15,000 to Blackwood as a result of these solicitations, the OSC says. However, on Dec. 19, 2012, OSC staff served a temporary order on them, halting Blackwood’s operations.
A hearing is planned for February 19.