TORONTO, March 14, 2013 /CNW/ - Michael Chomica was sentenced to two
years in jail today after pleading guilty to three counts of fraud
contrary to section 126.1 of the Securities Act (Ontario), before the Honourable Justice Brent Knazan of the Ontario
Court of Justice.
Chomica admitted to being the architect of two fraudulent advance-fee
schemes that targeted investors in Ontario, Europe, the United Kingdom,
Africa and Asia, as well as arranging for bank accounts, under his
control, to be used in a third fraudulent advance-fee scheme that
primarily targeted investors residing in the United Kingdom. In total,
investors lost approximately $591,470 in combined U.S. and Canadian
funds as a result of the three schemes.
Chomica's involvement in the schemes began around October 2009 and ran
until November 2010 when the OSC executed a search warrant at Chomica's
residence in downtown Toronto.
Chomica continues to be subject to a cease trade order prohibiting him
from trading in securities. The cease trade order was first made by the
OSC on November 4, 2010 in relation to this matter. The cease trade
order and other documents related to this matter are available on the
OSC website at www.osc.gov.on.ca.
Under section 122 of the 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. Quasi-criminal
means that a jail term is a possible sanction if a defendant is
convicted of a violation of the Act. The OSC pursues cases in court in
order to seek sanctions and penalties that send a strong message of
deterrence 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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