TORONTO, May 18 /CNW/ - Mr. Justice Joseph Kenkel of the Ontario Court
of Justice today found Abraham Grossman, Eric O'Brien, Abel DaSilva and
Shallow Oil and Gas Inc. each guilty on several counts of breaching the
Securities Act (Ontario), including fraud, in a quasi criminal proceeding.
Grossman, O'Brien, DaSilva and Shallow Oil and Gas Inc. were charged by
the OSC on June 12, 2008 in relation to their roles in running an
alleged "boiler room" operation. The operation started in the fall of
2007 and was terminated in January of 2008 when the OSC executed a
search warrant at the Shallow Oil and Gas Inc. office that was located
in Markham, Ontario. At the time of the raid, the accused were actively
soliciting investors across Canada using high pressure sales tactics
along with false and misleading information and raised approximately
$250,000 before the operation was shut down by the OSC.
Justice Kenkel found Grossman, O'Brien, DaSilva and Shallow Oil and Gas
Inc. each guilty of trading in securities without registration and
trading in securities without a prospectus. Grossman, O'Brien and
DaSilva were also found guilty of trading in securities of Shallow Oil
and Gas Inc. at a time when they were prohibited from trading in
securities by an order of the OSC. Grossman and DaSilva were also
convicted of providing misleading or untrue statements to OSC Staff.
A sentencing hearing for Grossman, O'Brien, DaSilva and Shallow Oil and
Gas Inc. is scheduled for July 14, 2011 at 9:30 a.m. in Courtroom 200
at the Ontario Court of Justice, 50 Eagle Street, Newmarket, Ontario.
Grossman, O'Brien, DaSilva and Shallow Oil and Gas Inc. continue to be
subject to a cease trade order prohibiting them from trading in
securities. The cease trade order was first made by the OSC on January
16, 2008. The cease trade order and other documents related to this
matter are available on the OSC website at www.osc.gov.on.ca.
Under section 122 of the Act, the OSC has the authority to lay
quasi-criminal charges against individuals or companies in the Ontario
Court of Justice for alleged violations of the Act. Quasi-criminal
means that a jail term is a possible sanction if a defendant is
convicted of a violation of the Act. The OSC pursues cases in court in
order to seek sanctions and penalties that send a strong message of
deterrence to those who try to exploit investors.
The mandate of the OSC is to provide protection to investors from
unfair, improper or fraudulent practices and to foster fair and
efficient capital markets and confidence in capital markets. Investors
are urged to check the registration of any person or company offering
an investment opportunity and to review the OSC's investor materials
available at www.osc.gov.on.ca.
SOURCE Ontario Securities Commission
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