The Ontario Commission Commission (OSC) ruled Wednesday that Medra Corp., a purported real estate investment firm, engaged in securities fraud, an illegal distribution, and unregistered trading.
The OSC issued its decision and reasons in a case against Cabo Catoche Corp. (aka Medra), finding that the company traded without registration, engaged in a distribution without filing a prospectus, created a misleading appearance of trading activity, and engaged in fraud. It didn’t levy any sanctions in the case yet, the OSC will hold a hearing at a later date to determine any penalties.
Medra did not appear at the hearing, or make any submissions. The commission alleged that the firm raised approximately $8 million from investors by issuing and selling over 85 million shares to more than 370 investors in order to invest in real estate and resort development.
Instead, the funds were used for various purposes, including investments in a company that purported to generate returns by using computer software to invest in derivatives.
The OSC ruled that “the evidence is clear that Medra engaged in trading”, without registration; that the trading of shares from its treasury represented an illegal distribution; that it made misleading statements regarding the use of investor funds; and, that it “knowingly engaged in fraud”, contrary to the public interest.
Medra’s president and chief executive, Vincent Ciccone, settled with the OSC last year.