Decision in brief: Scheinman, Inter-Jurisdictional Enforcement Proceeding, Sanctions, November 13, 2023

The Ontario Court of Justice convicted Derek Scheinman of fraud. Scheinman promised investors their money was being used to fund mortgages and guaranteed them high rates of return. Instead, he used the money to pay back other investors and for his own personal expenses. The Court sentenced Scheinman to four years in jail.

OSC staff asked that Scheinman be restricted from participating in Ontario’s capital markets based on the Court’s decision.

The Tribunal decided to permanently ban Scheinman from participating in Ontario’s capital markets. Scheinman defrauded many victims over a period of eleven years in the total amount of $23 million. What he did was dishonest and shows that he cannot be trusted. A permanent ban from the capital markets is needed to protect investors from Scheinman and to discourage other people who might think about doing something similar