News Release

Ontario Securities

20 Queen St. W.
Box 55, Suite 1900
Toronto, ON M5H 3S8
Commission des valeurs mobilières de l'Ontario

March 30, 2012

George Schwartz Sentenced to 90 Days in Jail for Breaching OSC
Temporary Cease Trade Order and Trading Without Registration

TORONTO – The Ontario Securities Commission announced today that Mr. Justice Bigelow of the Ontario Court of Justice has sentenced George Schwartz to 90 days in jail for violating the terms of an OSC temporary cease trade order and for trading in securities without registration. Along with the jail sentence, Mr. Justice Bigelow placed Schwartz on probation for 12 months and ordered him to perform 100 hours of community service during the period of probation.

Schwartz pled guilty to the offences on February 24, 2012. The temporary cease trade order that Schwartz violated prohibited his trading in securities of U308 Resources Inc. The cease trade was issued in December 2006 and remains in effect until July 29, 2019. Schwartz also pled guilty to trading without being registered to trade in securities. Both offences are contrary to the Ontario Securities Act.

U308 Resources Inc., which operated in Toronto, was engaged in an illegal distribution of U308 securities to members of the public. Schwartz assisted in introducing resource properties to U308 for acquisition. He was involved in the purchase and acquisition of mineral rights and mining claims and leases in properties located in Zambia and New Mexico. Schwartz acted in furtherance of trades in securities by permitting his electronically-imprinted initial to appear on the U308 share certificates as the U308 Treasurer. Schwartz was not the Treasurer and did not perform any other role as an officer of U308.

Between July 2007 and December 2008, approximately 107 investors purchased U308 securities with a total value of $2,380,390.

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



For Media Inquiries: Carolyn Shaw-Rimmington
Manager, Public Affairs

Dylan Rae
Media Relations Specialist

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