TORONTO, Sept. 18, 2013 /CNW/ - Terrence M. Bedford was sentenced today to two years in the federal penitentiary in relation to a US$4,985,867 fraudulent investment fund scheme.
Bedford entered a guilty plea to one count of fraud contrary to the Securities Act, R.S.O. 1990, c. S. 5, as amended (the Act) before the Honourable Mr. Justice John D. Takach in the Ontario Court of Justice.
Bedford admitted that he orchestrated the fraud between 2000 and 2011 by misleading approximately 24 Canadian and American investors into believing that a fund Bedford ran called Greyhawk Equity Partners Limited Partnership (Millenium) (Greyhawk Millenium) was a highly profitable investment fund providing substantial returns to investors.
Bedford created and disseminated false documents to investors, including documents purportedly from an internationally known and respected audit firm that misrepresented the actual investments and concealed the true value of the fund and the actual investment losses. Through the creation and dissemination of the fraudulent documents, Bedford materially misrepresented to investors the value, security and performance of the assets held by Greyhawk Millenium. Bedford never advised investors that he was losing or had lost their investments.
"This case demonstrates that the OSC continues to aggressively pursue people who commit securities fraud in Ontario's capital market," said Tom Atkinson, Director of Enforcement at the OSC. "It is important that the appropriate sentences are imposed for serious financial crime to deter like-minded individuals."
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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