RCMP announced Thursday that two former corporate executives have been arrested and charged for allegedly filing a false prospectus, which led to more than 1,400 investors losing more than $30 million.

The former president and former treasurer of Onco Petroleum Inc., Robert Vanier and Terry Beattie, respectively, have both been charged with submitting a false prospectus contrary to the Criminal Code of Canada. Vanier also faces two counts of perjury.

The allegations have not been proven. Police say the pair have been arrested and are scheduled to appear to face the charges on Nov. 29 at the Old City Hall courthouse in Toronto.

The RCMP’s GTA Financial Crime Unit allege that they filed a false prospectus, indicating that Onco Petroleum had more than US$20 million available for development of its oil and gas resources, when it did not.

They note that Onco debuted as a public company in November 2007 on the CNSX at $5.00 per share, but that its’ shares dropped to approximately 15¢ per share before a cease trade order was imposed in July 2008. The company was ultimately delisted from the stock exchange and petitioned into bankruptcy.

“The RCMP and our partner agencies are committed to maintaining investor confidence in the integrity of the public markets,” said superintendent Dave Bellamy, the officer in charge of the RCMP financial crime units in Toronto.

Back in 2010, the Ontario Securities Commission (OSC) settled with Vanier (aka Carl Joseph Gagnon), concerning allegations that the company’s prospectus included a misrepresentation (regarding the $20 million, which was in the form of an unsecured promissory note that was not revealed in the prospectus); that it made a misrepresentation to the exchange in its listing application; and that Vanier didn’t disclose that he was previously known as Gagnon (a man with 70 criminal convictions, including numerous fraud convictions). According to the settlement, he admitted breaching Ontario securities law by failing to provide full, true and plain disclosure.

He agreed to a 13 year trading ban; a permanent ban from registration, and from becoming a director or officer of any issuer, registrant, or investment fund manager; and, $10,000 in costs.

The RCMP acknowledged the assistance of the U.S. Federal Bureau of Investigation (FBI) in the investigation.