Stephan Katmarian to be jailed following fraud conviction

TORONTO, June 15, 2026 /CNW/ - The Ontario Securities Commission (OSC) announces that Stephan Katmarian, executive director, managing director and board chair of Peblik Inc. (Peblik), and resident of Mississauga, Ontario, has been sentenced to 6 months in jail for securities fraud pursuant to s. 126.1 of the Securities Act. Mr. Katmarian will be placed on probation for 18 months upon completion of his jail sentence.

Peblik Inc. sold investors notes convertible into a cryptocurrency called the "Peblik Token" which was never actually launched. These notes were promoted based on a false claim that the Peblik Token, and thus the value of the investments, was backed by a real-world asset, the 'Thierry Mine', a large, inactive Northern Ontario mine.  In fact, Peblik had no valid interest in the mine. Mr. Katmarian was aware of, and responsible for, this misrepresentation in some Peblik materials.

"This decision is a strong reminder that making false claims about the financial backing of assets is fraud. It harms investors, damages confidence in Ontario's capital markets, and has serious consequences," said Bonnie Lysyk, Executive Vice President, Enforcement, OSC. "The OSC will continue to take action as we work hard to curb fraud, and hold those responsible to account for their actions."

Between January 1, 2018, and August 8, 2019, Peblik raised about $480,000 from 32 investors, all of whom lost their investments.  Mr. Katmarian knew that his misrepresentations about Peblik's interest in the Thierry Mine could put investors' financial interests at risk.

In March 2024, the Ontario Court of Justice acquitted Mr. Katmarian of all charges. The OSC appealed three of the four acquittals. On June 20, 2025, the Ontario Superior Court of Justice partially allowed the appeal, substituting a conviction on securities fraud. Two unrelated grounds of appeal were dismissed. On May 11, 2026, Mr. Katmarian was sentenced to 6 months in prison and will be placed on probation for 18 months upon completion of his jail sentence.

Mr. Katmarian is appealing his conviction at the Court of Appeal.

These charges arise from an investigation by the OSC's Criminal Investigations & Prosecutions team, which is part of the Enforcement Division of the OSC. The team investigates securities-related fraud, market manipulation, and related misconduct, including the investigation of repeat offenders and those who breach Capital Markets Tribunal orders. Their primary objectives are to protect investors and enhance confidence in the Canadian capital markets through effective enforcement. Charges laid under the Securities Act are prosecuted by the OSC. Charges laid under the Criminal Code are prosecuted by the Ministry of the Attorney General.

The mandate of the OSC is to provide protection to investors from unfair, improper or fraudulent practices, to foster fair, efficient and competitive capital markets and confidence in the capital markets, to foster capital formation, and to contribute to the stability of the financial system and the reduction of systemic risk. Investors are urged to check the registration of any persons or company offering an investment opportunity and to review the OSC investor materials available at https://www.osc.ca.

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SOURCE Ontario Securities Commission

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