An Ontario court has sentenced Vadim Tsatskin to three years in jail for fraud, the Ontario Securities Commission said Thursday.
Tsatskin was charged in relation to his role with a company known as Global Energy Group, Ltd., which operated an unregistered sales office trading units of limited partnerships called New Gold LLP to members of the public. Tsatskin was one of the persons controlling the operations of Global Energy in Ontario.
“Today’s jail sentencing makes it clear that the courts take these matters seriously and will impose significant sanctions where an individual has caused harm to investors,” said Tom Atkinson, OSC director, enforcement, in a release.
OSC Staff alleged that between June 2007 and June 2008 approximately US$14.75 million worth of New Gold Securities were sold to members of the public, the majority of whom lived in Western Canada.
Tsatskin pled guilty on April 5, 2011, to one count of fraud. In his plea, Tsatskin admitted that the New Gold Securities were fraudulently represented to constitute ownership interests in Kentucky oil and gas leases.
Tsatskin’s conviction was the first finding of guilt for fraud in a quasi-criminal proceeding brought by the OSC before the Ontario Court of Justice.