Investors thinking they were buying into the foreign currency exchange market got something altogether different resulting in serious losses and providing another reason why advisors are worth retaining.
The OSC held a hearing In Writing March 4 against several Ontario respondents that alleges they traded in securities without being registered to do so and without an available exemption from the registration requirements, contrary to subsection 25(1)(a) of the Securities Act.
Peter Balazs, one of the respondents, raised $3.7 million from investors in Canada and the U.S. The investors were under the impression that the funds would be invested in the foreign currency exchange market.
That did not happen.
Instead, some of the funds were used to pay withdrawal payments to other investors or to pay for personal expenses. Of the $3.7 million, less than half has been recovered.
The Reasons and Decision of this case make it perfectly clear that the respondents had no intention of carrying on a legitimate business and were simply intent on profiting from their alleged illegal activities.
In addition, the OSC made an Order in this case that should see final submissions on sanctions and costs delivered by OSC staff sometime at the end of April.
Peter Balazs, one of the respondents, raised $3.7 million from investors in Canada and the U.S. The investors were under the impression that the funds would be invested in the foreign currency exchange market.
That did not happen.
Instead, some of the funds were used to pay withdrawal payments to other investors or to pay for personal expenses. Of the $3.7 million, less than half has been recovered.
The Reasons and Decision of this case make it perfectly clear that the respondents had no intention of carrying on a legitimate business and were simply intent on profiting from their alleged illegal activities.
In addition, the OSC made an Order in this case that should see final submissions on sanctions and costs delivered by OSC staff sometime at the end of April.
