TORONTO, July 20, 2012 /CNW/ - On July 20, 2012, the Ontario Securities Commission (OSC) laid
quasi-criminal charges against Abraham Herbert Grossman in connection
with alleged breaches of section 122(1)(c) and 126.1(b) of the Securities Act (Ontario).
Between October 2009 and February 2011, Mr. Grossman and the Strategic
Gifting Group, a sole proprietorship in Ontario registered to Mr.
Grossman, operated a fraudulent fund raising/donor introduction share
gifting scheme of Dixon Perot & Champion Inc. securities (DPC
Securities) involving four Ontario charities.
Specially, Grossman and Strategic Gifting brokered introductions between
the charities and the donors for a service fee of 90 per cent of the
donation. Grossman and Strategic Gifting then issued shares of DPC
Securities to the donors, which they valued at an inflated amount. A
total of $332,620 was received by Strategic Gifting from the charities
as a result of this scheme.
Mr. Grossman engaged in this scheme while he was prohibited from trading
in securities by orders of the OSC and while he was in the middle of
two unrelated trading and fraud trials. In addition to this new fraud
charge, Mr. Grossman is charged with breaching the trading restrictions
placed on him by the OSC.
A first appearance for Mr. Grossman is scheduled to take place on
Thursday, August 23, 2012 at 10:30 a.m. in Courtroom 205 at the
Newmarket Courthouse, 50 Eagle Street, Newmarket.
Under section 122 of the Securities 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. The maximum
penalty available upon conviction is a fine of not more than $5 million
or imprisonment for a term of not more than five years less a day, or
both. The OSC pursues cases in court in order to seek sanctions and
penalties that send a strong message of deterrence and denunciation 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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