OSC Panel Finds Lyndz Pharmaceuticals Inc., James Marketing Ltd., Michael Eatch and Rickey McKenzie in Breach of Ontario Securities Act

TORONTO, May 17 /CNW/ - In a decision released today, an Ontario Securities Commission (OSC) panel found, among other things, that Lyndz Pharmaceuticals Inc. ("Lyndz"), James Marketing Ltd. ("James Marketing"), Michael Eatch ("Eatch") and Rickey McKenzie ("McKenzie") committed fraud through an investment scheme operating out of the Toronto area.

The panel also found that the Respondents distributed the shares of Lyndz without having filed a prospectus and without the benefit of a prospectus exemption under Ontario securities law.

In its decision, the panel found that:

" this case involves an investment scheme in which the Respondents distributed securities to investors based on the premise that their funds would be invested in the development of Lyndz' proposed pharmaceutical business and humanitarian projects in developing nations. That premise was misleading and false and as a result of the Respondents' activities, Lyndz' investors were deprived of their funds. Investor funds were diverted by the Respondents to their personal benefit rather than being invested in a pharmaceutical business."

The initial phase of the illegal distribution, involving only Eatch and Lyndz and spanning 1999-2004, raised approximately $400,000 from investors in Ontario and other provinces. The second phase, involving all Respondents and spanning 2005-2008, raised approximately $1,700,000 from investors in the UK. The fraud finding applies only to the conduct after December 31, 2005.

A sanctions and costs hearing will be scheduled.  A copy of the Reasons and Decision in this matter is available on the OSC website at www.osc.gov.on.ca.

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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