20 Queen St. W.
Box 55, Suite 1900
Toronto, ON M5H 3S8
|Commission des valeurs mobilières de l'Ontario
||FOR IMMEDIATE RELEASE
October 28, 2011
OSC Panel Finds Prosporex Investment Club Inc.
in Breach of Ontario Securities Act
TORONTO – In a decision released today, an Ontario Securities Commission (OSC) panel found Prosporex Investment Club Inc., Carlton Ivanhoe Lewis, Mark Anthony Scott and Sedwick Hill, along with other named corporate respondents, breached the Ontario Securities Act and acted contrary to the public interest by engaging in fraudulent conduct, unregistered trading, and an illegal distribution of securities.
The respondents raised more than $29 million from more than 1,700 Ontario investors from the sale of investment contracts between the spring of 2007 and December 2008. Investors were told that their monies would be pooled and invested by professional traders in foreign exchange.
The OSC panel found that Lewis, Scott and Hill deceived investors by telling them they were earning monthly profits of 5% to 11% from the foreign exchange trading, causing investors to increase their position and attracting new investors. Lewis, Scott and Hill had control of the bank accounts and diverted approximately $20 million to uses other than foreign exchange, of which $5.3 million was returned to investors. Lewis, Scott and Hill transferred significant sums to themselves: Lewis received $920,000, Scott received $1.5 million and Hill $3.4 million.
In light of the finding of fraud, the panel declined to make a finding on Staff’s allegation that the respondents made materially misleading statements. The panel also did not find that the respondents were advising in relation to securities.
A sanctions and costs hearing will be scheduled. A copy of the Reasons and Decision in this matter 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.
|For Media Inquiries: email@example.com||Wendy Dey
Director, Communications & Public Affairs
Manager, Public Affairs
Media Relations Specialist
|For Investor Inquiries:||OSC Contact Centre
1-877-785-1555 (Toll Free)