Abraham Grossman, Eric O'Brien, Abel DaSilva and Shallow Oil and Gas Inc. Found Guilty of Breaching Ontario Securities Act

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

For further information:

For Media Inquiries: 

Wendy Dey
Director, Communications & Public Affairs
416-593-8120


Carolyn Shaw-Rimmington
Manager, Public Affairs
416-593-2361


Dylan Rae
Media Relations Specialist
416-595-8934
For Investor Inquiries:

OSC Contact Centre
416-593-8314
1-877-785-1555 (Toll Free)


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