The Ontario Securities Commission (OSC) announced Friday that it is seeking a reciprocal order against an Ontario man who has been convicted of securities fraud in New Hampshire, that aims to ban him from the markets.
The OSC says it will hold a hearing on April 3 to consider allegations against New Futures Trading International Corp. and Fernando Honorate Fagundes (aka Henry Roche), seeking trading and registration bans. The allegations have not been proven.
The commission’s allegations say that the firm, and Fagundes, have been convicted by the U.S. District Court in New Hampshire of violating securities laws in a complaint by the U.S. Securities and Exchange Commission (SEC), alleging that they raised at least US$1.3 million selling high-yield promissory notes to at least 14 investors in the United States and Canada, promising that their funds would be invested in bonds, treasury notes and/or 10 year Treasury note futures contracts, as well as in New Futures.
Instead, it said that Fagundes used approximately US$937,000 of investors’ money to make ‘interest’ payments to prior investors in the scheme, and that he misappropriated another US$359,000 to support his lifestyle and to operate a horse breeding ranch in Kendal, Ontario.
The New Hampshire district court convicted them and ordered that Fagundes and New Futures: are liable for disgorgement of US$1,242,972, prejudgment interest of US$40,917; and, a civil penalty of US$150,000.
The OSC says that by engaging in this conduct, Fagundes and New Futures acted contrary to the public interest, and that an order against them from the OSC is warranted.