The Ontario Securities Commission (OSC) has permanently banned one of the participants in an alleged advance fee scheme.

The OSC announced that it has entered a settlement with Jan Chomica that results in a permanent ban from trading, registration, or serving as a corporate director or officer. It also permanently cease traded one of the firms involved in the scheme, Global Consulting and Financial Services.

According to the settlement, Chomica facilitated the use of two bank accounts to receive and distribute funds from the victims of two separate, but similarly structured, advance-fee schemes, directed by her brother, Michael Chomica. Approximately US$224,000 and C$23,500 was transferred through these accounts as part of these schemes, it says.

Earlier this year, Michael Chomica pled guilty to three counts of fraud in the Ontario Court of Justice, and he was sentenced to two years in prison. (See Investment Executive, Securities fraudster pleads guilty, March 14, 2013).

As part of that plea, he admitted that he controlled the accounts and that Jan Chomica carried out transactions at his instruction. After his sentencing in the case, OSC staff withdrew their quasi-criminal charges against Jan Chomica.

The settlement indicates that Jan Chomica maintains that she was unaware of the solicitations being made to investors, that she carried out the transactions for her brother, and was not compensated for her involvement.