The Ontario Securities Commission (OSC) has found that a girlfriend of alleged securities fraud mastermind, Sandy Winick, also violated securities laws.

The OSC released a decision today, ruling that Andrea McCarthy acquiesced to fraud by two companies, BFM Industries Inc. and Liquid Gold International Inc.; companies where she was listed as a director and officer. It also found that McCarthy and the companies illegally distributed securities and traded without registration.

A hearing has been scheduled for March 12 to consider sanctions in the case.

The commission has already found Winick liable for his role in the frauds perpetrated by BFM and Liquid Gold. (See Investment Executive, Two investment schemes fraudulent: OSC, August 8, 2013.)

According to the OSC’s decision released today, Winick was “the directing mind” of BFM and Liquid Gold when fraud, illegal distributions, and unregistered trading occurred. However, it found that McCarthy also violated securities rules, as a director and officer of the firms. It says that she incorporated the companies, established their websites, and carried out transfers from their bank accounts, at Winick’s direction.

The decision notes that McCarthy met Winick through her husband in 2003. They subsequently became romantically involved and she ultimately left her husband. In 2009, Winick travelled to Thailand, but would stay with McCarthy when he was back in Ontario, it says. The OSC later executed a search warrant at her house and seized boxes of documents belonging to Winick and one of his associates, Kolt Curry. It notes that those documents related to Denver Gardner, an investment bank that sold shares in BFM, Liquid Gold and numerous other companies.

Winick was arrested in Thailand last year, and faces securities fraud allegations in the U.S. Those charges have not been proven.

Late last year, the OSC also ordered Winick to pay over $1 million in disgorgement and monetary penalties for violations of Ontario securities law. (See Investment Executive, OSC issues sanctions in American Heritage case, December 23, 2013.)