News & Events

News Release



Ontario
Securities
Commission


20 Queen St. W.
22nd Floor
Toronto, ON M5H 3S8
Commission des
valeurs mobilières
de l'Ontario
FOR IMMEDIATE RELEASE

October 8, 2014


Keith Summers Sentenced to Three Years In Jail after Guilty Plea to Criminal Charges


TORONTO – Keith Summers was sentenced to three years in jail today after pleading guilty to one count of fraud over $5000 and one count of uttering a forged document contrary to the Criminal Code of Canada before The Honourable Justice Ray of the Old City Hall - Ontario Court of Justice in Toronto, Ontario. This sentence comes as a result of an investigation by the Ontario Securities Commission’s Joint Serious Offences Team (JSOT).

JSOT launched an investigation in July 2013 into the activities of Summers and his investment fund companies Tricoastal Capital Partners LLC and Tricoastal Capital Management Ltd.  Summers admitted that he sold Tricoastal securities and defrauded  investors through his fraudulent use of their investment funds, at the same time, not disclosing his trading losses. Summers also admitted that he issued false Tricoastal Capital Partners LLC financial statements as part of this scheme. Summers' sentence included an order to pay USD $4.33 million in restitution, an amount that reflects the full investor losses in this case. As well, Summers has already forfeit $1.4 million in funds that remained in the Tricoastal accounts. 

OSC Staff also initiated an administrative proceeding with respect to this matter.  On September 10, 2014, the Commission approved a settlement agreement between Staff, Summers and the Tricoastal investment fund companies. The respondents admitted to securities fraud and agreed to permanent market bans, subject to certain exceptions, including prohibitions on trading and acquiring securities, removal of exemptions, and prohibitions on Summers becoming or acting as an officer or director. A copy of the Settlement Agreement dated August 20, 2014 is available at www.osc.gov.on.ca.

JSOT was established by the OSC as an enforcement partnership between the OSC and the Royal Canadian Mounted Police Financial Crime program and the Ontario Provincial Police Anti Rackets Branch. The primary objective of JSOT is to protect investors and further enhance confidence in the Canadian capital markets through effective enforcement. This is accomplished through collaborative investigations of serious violations of the law using the provisions of the Ontario Securities Act or the Criminal Code of Canada.

The OSC wishes to acknowledge the important assistance provided to this investigation by the Asset Management Unit of the U.S. Securities and Exchange Commission (SEC) in New York.  The SEC also brought settled administrative proceedings against Mr. Summers.

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 investor materials available at http://www.osc.gov.on.ca



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For Media Inquiries: media_inquiries@osc.gov.on.ca
Carolyn Shaw-Rimmington
Manager, Public Affairs
416-593-2361

For Investor Inquiries: OSC Contact Centre
416-593-8314
1-877-785-1555 (Toll Free)
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