The Ontario Securities Commission (OSC) announced March 31 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 sentenced to 18 months in jail and 18 months probation.
Ki and 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. They 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 they sold fraudulent shares in TSM, made material misrepresentation regarding investments in TSM and that a significant percentage of the money raised was used for their personal benefit, explained the OSC.
The investigation of Ki and DaSilva’s actions 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.
"The sentence imposed today demonstrates our unwavering commitment to pursuing, prosecuting and seeking meaningful jail time for individuals who prey on Ontario investors," said Jeff Kehoe, Director, Enforcement at the OSC.
Another individual involved in this scheme, Kamal Singh ("Bobby") Athwal, pled guilty to one count of distributing securities without a prospectus. He 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.