TORONTO, March 1, 2013 /CNW/ - A panel of the Ontario Securities
Commission (OSC) today released its Reasons and Decision on Sanctions
and Costs, permanently banning Empire Consulting Inc. (Empire) and its
president and founder, Desmond Chambers (Chambers), from trading in
securities for their roles in raising approximately $1,493,108 from the
sale of the debt elimination strategy (DES) program to approximately 26
Ontario investors. Investors were encouraged to remortgage their homes
in order to provide funds to invest in the DES program.
In today's decision, the OSC panel observed that Empire and Chambers
"exploited the weaknesses of modest, hard-working individuals who
trusted and relied upon false representations to their detriment."
Empire and Chambers were found to have perpetrated a fraud on the
Empire investors which resulted in irreversible financial harm to the
Empire investors. Accordingly, the OSC panel ordered that Empire and
Chambers jointly pay an administrative penalty of $300,000. Empire and
Chambers were also ordered to jointly and severally pay $859,555 in
disgorgement and $235,502.15 in costs.
The OSC panel found in its decision on the merits, released August 16,
2012, that "[n]otwithstanding that Empire was unprofitable, Chambers
was using investor funds for personal expenses when Empire was
consistently losing on its investments in the Forex Accounts." The OSC
panel also found that Empire and Chambers "continuously misrepresented
to investors that their investments were growing at incredible rates at
a time when the only returns achieved by Empire were negative returns."
A copy of the Reasons and Decision on Sanctions and Costs 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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