Sei-Jin Ki and Carlos DaSilva Sentenced to jail for Securities Act Offences

TORONTO – The Ontario Securities Commission (OSC) announced today that Sei-Jin Ki of Toronto, Ontario, has been sentenced to 90 days in jail plus 18 months probation. Carlos DaSilva, of no fixed address, was also sentenced to 18 months in jail and 18 months probation. 

Mr. Ki and Mr. DaSilva were sentenced on March 29, 2022 by Justice M. McLeod of the Ontario Court of Justice in Toronto. An order for restitution of almost $100,000 was also made against both parties. Mr. Ki and Mr. DaSilva were previously convicted of charges under the Ontario Securities Act in the Ontario Court of Justice in Toronto on December 13, 2021.

The convictions relate to the sale of more than $130,000 worth of securities in Toronto Scientific Medtech Inc. (“TSM”) to Ontario investors between May 1, 2016 and June 30, 2017. The court found that Mr. Ki and Mr. DaSilva sold fraudulent shares in TSM, made material misrepresentation regarding investments in TSM and that a significant percentage of the money raised was used for the personal benefit of Mr. Ki and Mr. DaSilva.

“The sentence imposed today demonstrates our unwavering commitment to pursuing, prosecuting and seeking meaningful jail time for individuals who prey on Ontario investors,” says Jeff Kehoe, Director, Enforcement at the OSC.

Mr. Ki was convicted of the following offences under the Securities Act: one count of fraud contrary to section 126.1(1)(b), one count of trading of securities without registration contrary to section 25(1), and one count of trading in securities without a prospectus contrary to section 53(1) of the Securities Act.

Mr. DaSilva was convicted in absentia of the same charges as Mr. Ki. In addition, Mr. DaSilva was convicted under section 122(1)(c) of the Securities Act for violating a permanent trading ban order that was issued against him by the OSC in December 2008.

Another individual involved in this scheme, Kamal Singh (“Bobby”) Athwal, pled guilty to one count of distributing securities without a prospectus contrary to section 53(1) of the Securities Act on March 24, 2021. Mr. Athwal was sentenced to a fine of $1,000 and 12 months of probation. In addition, he paid $24,000 in restitution, which was returned to investors.

This investigation was conducted by a team within the OSC Enforcement branch that investigates the most serious breaches of Ontario securities law, including the investigation of alleged recidivists, and prosecutes these matters in provincial court. Their primary objective is to protect investors and further enhance confidence in the Canadian capital markets through effective enforcement. Since inception, this team has pursued 58 matters before the courts involving 84 accused persons.

Charges laid under the Securities Act are prosecuted by the OSC. Charges laid under the Criminal Code are prosecuted by the Ministry of the Attorney General.

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 http://www.osc.ca.

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