Reza Mokhtarian Charged with Securities Act Offences
For Immediate Release OSC Enforcement Before the Court
TORONTO – The Ontario Securities Commission (OSC) announced today that Reza Mokhtarian of Bracebridge, Ontario, has been charged with two counts of engaging in, or holding himself out as engaging in, the business of trading in securities, without being registered to trade in securities, contrary to subsection 25(1) of the Securities Act (Ontario).
The charges relate to Mr. Mokhtarian’s alleged participation in the sale of investment contracts related to a decentralized cryptocurrency company called Neuroneum. The OSC is alleging that Mr. Mokhtarian traded the securities from Ontario to Australian investors, who paid their money to accounts in Ontario. Between September 2019 and November 2020, Mr. Mokhtarian allegedly sold these contracts despite his current bail conditions prohibiting him from trading in securities.
Mr. Mokhtarian is currently awaiting trial on outstanding Criminal Code fraud charges being prosecuted by the Ministry of the Attorney General.
Mr. Mokhtarian is scheduled to appear in court on this matter on January 11, 2022, at 11:00 a.m. in Courtroom #112 at the Ontario Court of Justice, Old City Hall, 60 Queen St. W., Toronto, Ontario.
This investigation was conducted by a team within the OSC Enforcement branch that investigates quasi-criminal and criminal offences related to securities, including the investigation of alleged recidivists. Their primary objective is to protect investors and further enhance confidence in the Canadian capital markets through effective enforcement. To date, this team has pursued 56 quasi-criminal and criminal matters involving 80 accused.
Charges laid under the Securities Act (quasi-criminal) are prosecuted by the OSC. Charges laid under the Criminal Code are prosecuted by the Ministry of the Attorney General.
**Update as of January 26, 2024**
On January 25, 2024, a judge at the Superior Court of Justice in Toronto imposed a 3-year prison sentence on Reza Mokhtarian in the Capital Trust Markets case. The judge also issued a free-standing restitution order in the amount of $399,888, which represents the outstanding identifiable loss to investors. A free-standing restitution order may be enforced in the same manner as a civil judgment is enforced.
The mandate of the OSC is to provide protection to investors from unfair, improper or fraudulent practices, to foster fair, efficient and competitive capital markets and confidence in the capital markets, to foster capital formation, and to contribute to the stability of the financial system and the reduction of systemic risk. Investors are urged to check the registration of any persons or company offering an investment opportunity and to review the OSC investor materials available at https://www.osc.ca.
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