The Ontario Securities Commission (OSC) said Monday that an investigation by its Joint Serious Offences Team (JSOT) has led to quasi-criminal charges against a pair of Toronto area men in connection with alleged schemes involving U.S penny stocks.
The OSC says that Joel Tombran of Mississauga, Ont. and Davor Milardovic of Oakville, Ont. have both been charged with two counts of fraud and two counts of making misleading or untrue statements in connection with alleged U.S penny stock schemes.
The allegations have not been proven. The duo’s first court appearance is scheduled to take place on February 28, at the Ontario Court of Justice in Toronto.
The commission says that the JSOT — which is an enforcement partnership between the OSC and the RCMP — launched an investigation in early 2013; and the resulting charges “relate to the defendants’ alleged roles in fraudulent schemes involving Cannon Explorations and Therma-Med.”
Both companies are quoted on the OTC market in the U.S., and the OSC reports that staff from the U.S. Securities and Exchange Commission (SEC) aided the investigation.
“Our Joint Serious Offences Team is mandated to aggressively pursue fraudulent activity that harms retail investors. This case demonstrates that we will work with our partners to prosecute serious allegations of quasi-criminal behaviour in timely fashion,” said Tom Atkinson, director of enforcement at the OSC.