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|Commission des valeurs mobilières de l'Ontario
||FOR IMMEDIATE RELEASE
November 24, 2011
Vadim Tsatskin Sentenced to Three Years in Jail for Breaching Ontario Securities Act
TORONTO – Justice Robert Bigelow of the Ontario Court of Justice today sentenced Vadim Tsatskin to three years in jail for fraud.
Tsatskin was charged in relation to his role with a company known as Global Energy Group, Ltd., which operated an unregistered sales office trading units of limited partnerships called New Gold LLP (“New Gold Securities”) to members of the public. Tsatskin was one of the persons controlling the operations of Global Energy in Ontario.
“Today's jail sentencing makes it clear that the Courts take these matters seriously and will impose significant sanctions where an individual has caused harm to investors,” said Tom Atkinson, OSC Director, Enforcement
OSC Staff alleged that between June 2007 and June 2008 approximately $14.75 million (U.S.) worth of New Gold Securities were sold to members of the public, the majority of whom lived in Western Canada.
Tsatskin pled guilty on April 5, 2011, to one count of fraud contrary to section 126.1 of the Ontario Securities Act. In his plea, Tsatskin admitted that the New Gold Securities were fraudulently represented to constitute ownership interests in Kentucky oil and gas leases. Tsatskin’s conviction was the first finding of guilt for fraud in a quasi-criminal proceeding brought by the OSC before the Ontario Court of Justice.
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 Commission’s investor materials available at www.osc.gov.on.ca
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