An Ontario tribunal says about 1,700 people who sank a total of $29 million into a purported investment club were victims of a fraud.

The panel announced Friday that the Prosporex Investment Club as well as three men and related companies violated the provincial securities law.

In a decision Thursday, it found they engaged in unregistered trading and distribution of securities contrary to the public interest.

Penalties will be determined at a separate hearing at the Ontario Securities Commission.

An OSC investigation found that only $5.3 million of the money collected was returned to investors.