Vernon Smith charged Quasi-Criminally with Unregistered Trading and Breaching OSC Cease Trade Orders

TORONTO – The Ontario Securities Commission (OSC) announced today that Vernon Smith of Barrie, Ontario has been charged with alleged breaches of the Securities Act (Ontario) following an investigation by the OSC’s Joint Serious Offences Team (OSC – JSOT).

Smith was charged with two counts of trading without registration as required by section 25(1) of the Securities Act and one count of trading in securities while he was subject to a temporary cease trade order by the Commission dated November 22, 2007.

Smith was further charged with one count of trading in securities of Telecorp Inc. during a time when he was prohibited from trading in securities by order of the Commission dated November 17, 2010.

The first court appearance for Smith in this matter is scheduled to take place May 23, 2014 at 11:00 a.m. in Courtroom # 111 at the Old City Hall – Ontario Court of Justice, 60 Queen Street West in Toronto, Ontario.

In November 2013 Smith was also charged with quasi-criminal offences by the OSC – JSOT. Smith is facing allegations under the Securities Act of trading without registration, advising without registration and two counts of breaching Commission cease trade orders in relation to his role in the Ticker Communications matter.  These charges are before the courts awaiting a trial.

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 – JSOT also wishes to acknowledge the assistance provided to this investigation by BaFin (German Federal Financial Supervisory Authority).

Smith continues to be subject to a cease trade order prohibiting him from trading in securities.

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 the capital markets.  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 www.osc.ca

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