Vernon Smith Charged Quasi Criminally with Unregistered Trading, Unregistered Advising 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 s. 122(1)(c) of the Securities Act (Ontario) following an investigation by the OSC’s Joint Serious Offences Team (JSOT).

Smith was charged with one count of trading without registration and one count of advising without registration. Both are required under the Securities Act.

Smith was also charged with trading in securities of Ticker Communications when he was subject to a temporary cease trade order by the Commission dated November 22, 2007, and one count of trading in securities of Ticker at a time when he was prohibited from trading by order of the Commission dated November 17, 2010. 

“We are pleased to see momentum by the JSOT, working jointly with the RCMP in this new alliance to protect investors from harm. This case demonstrates that the JSOT will aggressively pursue offenders who do not abide by our cease trade orders,” said Tom Atkinson, Director of Enforcement at the OSC.

The first court appearance for Smith in this matter is scheduled to take place December 11, 2013 at 9:00 a.m. in Courtroom # 111 at Old City Hall – Ontario Court of Justice, 60 Queen Street West, Toronto, Ontario.

JSOT was established in May 2013 by the OSC as an enforcement partnership between the OSC and the Royal Canadian Mounted Police Financial Crime program. The primary objective of JSOT is to protect investors and further enhance confidence in the Canadian capital markets through effective enforcement. This will be accomplished through collaborative investigations of serious violations of the law using the provisions of the Ontario Securities Act and/or the Criminal Code of Canada.

The JSOT appreciates the assistance provided to this investigation by BaFin (German Federal Financial Supervisory Authority) and the British Columbia Securities Commission.

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

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