TORONTO, May 4 /CNW/ - Justice Sparrow of the Ontario Court of Justice
today sentenced Abraham Herbert Grossman and Hanoch Ulfan each to 21
months in jail and two years of probation for breaches of the Securities Act (Ontario) (the Act). Under the terms of the probation orders, Mr.
Grossman and Mr. Ulfan are prohibited from trading in securities for a
two-year period and are to report monthly to a probation officer.
Maitland Capital Inc. (Maitland) was also fined $1 million for breaches
of the Act.
On March 24, 2011, following a trial pursuant to the quasi-criminal
prosecution provisions of the Act, Justice Sparrow found Mr. Grossman
and Mr. Ulfan guilty of running a "boiler room" operation, which raised
approximately $5.5 million by selling Maitland shares through high
pressure telephone sales tactics to investors throughout Canada and in
Mr. Grossman and Mr. Ulfan were each sentenced to a total of 21 months
in jail for trading in securities without registration, trading in
securities without a prospectus, giving prohibited undertakings
regarding the future value of Maitland shares, making prohibited
representations regarding Maitland being listed on a stock exchange in
the future and making misleading statements in a document filed with
the Ontario Securities Commission (OSC). As directors and officers of
Maitland, Mr. Grossman and Mr. Ulfan were sentenced on a further four
counts of breaching the Act.
Maitland was sentenced to a fine of $1 million for trading in securities
without registration, trading in securities without a prospectus,
giving prohibited undertakings regarding the future value of Maitland
Capital shares, making prohibited representations regarding Maitland
Capital Inc. listing on a stock exchange in the future and making
Mr. Grossman, Mr. Ulfan, Maitland and others continue to be subject to
cease trade orders originally issued by the OSC on January 24, 2006.
These cease trade orders and other documents related to this matter are
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
| || Carolyn Shaw-Rimmington |
Manager, Public Affairs
| || Dylan Rae |
Media Relations Specialist
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| For Investor Inquiries: || OSC Contact Centre |
1-877-785-1555 (Toll Free)