Decision in brief: Singh, Inter-Jurisdictional Enforcement Proceeding, Sanctions, January 16, 2024
The Ontario Court of Justice convicted David Singh of violating Ontario securities law by selling securities without being registered to do so and without filing a prospectus (a document that gives investors information about the investment) for those securities, and by committing fraud. Singh sold shares of his companies to investors and told them that their money would be invested in mortgages. However, none of the money was invested in mortgages. Instead, Singh used a significant portion for his personal expenses. The Court sentenced Singh to three and a half years in jail and ordered him to repay approximately $4.85 million.
OSC staff asked the Tribunal to ban Singh from participating in Ontario’s capital markets based on the Court’s decision.
The Tribunal decided to permanently ban Singh from participating in Ontario’s capital markets. Singh defrauded many victims over a period of three years in the total amount of $5.5 million. Singh’s extensive experience in capital markets means he should have known better. A permanent ban from the capital markets is needed to protect investors and to discourage other people who might think about doing something similar.