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
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
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