Stéphane Gagnon sentenced to five years and ordered to pay over $7.75 million

TORONTO, July 23, 2025 /CNW/ - The Ontario Securities Commission (OSC) announced today that Stéphane Gagnon, formerly of Ottawa, Ontario was convicted on one count of Fraud over $5,000 contrary to Section 380(1)(a) of the Criminal Code (Code) and one count of 'Use of Forged Document' contrary to Section 368(1) of the Code.

Mr. Gagnon was found guilty by the Superior Court of Justice in Toronto and was sentenced to 5 years in jail less time served and was also ordered to pay back the whole net amount of the fraud totaling over $7.75 million. The court ordered restitution to the victims and a fine in lieu of forfeiture. If Mr. Gagnon does not pay the fine, he may serve additional time in jail.

"Today's decision is a significant outcome for Ontario's investors who were harmed by Mr. Gagnon's actions," said Bonnie Lysyk, Executive Vice President of Enforcement at the OSC. "Where the OSC sees evidence of harm, we will take action to protect investors, and the integrity of our capital markets.  We are pleased with the judgment of the Superior Court and thank everyone involved in this case."

In an agreed statement presented to the Court, Mr. Gagnon admitted that between August 1, 2015, and May 31, 2021, he received more than $20 million from victims across Canada. He advertised to the public that he could help people access funds in their locked-in retirement accounts if they invested their money in his company. Mr. Gagnon accepted funds from more than 300 investors and then used a significant portion of the money for other purposes. He also admitted that he used forged lawyers' letters to attempt to continue his business relationship with one of the trust companies into which the victims' money had been deposited.

This case was brought by the OSC's Criminal Investigations & Prosecutions team, which is part of the Enforcement Division of the OSC. They investigate securities-related frauds, market manipulation, and related misconduct, including the investigation of repeat offenders and those who breach Capital Markets Tribunal or court orders and bans. Their primary objective is to protect investors and further enhance confidence in the Canadian capital markets through effective enforcement. To do this, they often partner and collaborate with other law enforcement agencies and police forces. 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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