Almost 11 years ago a pair of respondents to an Ontario Securities Commission (OSC) enforcement proceeding reached settlements with the regulator that included disgorgement. Now, investors who lost money are being invited to file claims to recover their losses.
The OSC said that approximately 40 investors who were solicited by Ronald Mainse or David Rutledge to invest in the Axcess Automation Investment and the Axcess Fund Investment may now be eligible to make claims for a share of the $435,000 recovered from Mainse, Rutledge and 6845941 Canada Inc. under settlements reached back in August 2010.
Only investors who Mainse or Rutledge introduced to the Axcess Investments can file a claim for their losses, the commission said in a release, noting that claims must be filed by Sept. 30.
Grant Thornton Ltd. was appointed as receiver of the funds that were paid to the OSC under the 2010 settlements, and it was authorized to administer the claims process.
Along with other sanctions, Rutledge agreed to disgorge over $262,800 and Mainse agreed to pay back $138,176.
Following those settlements, the OSC went ahead with enforcement proceedings against various others involved with the scheme, which purportedly raised US$15 million from investors — although, as part of the scheme, about US$10 million was returned to investors.
Ultimately, an OSC hearing panel ruled that the scheme was fraudulent, involved trading without registration and without filing a prospectus.
Following a subsequent hearing on sanctions in 2013, the panel ordered over $4.9 million in disgorgement, along with almost $1.3 million in penalties, trading, and registration prohibitions reports Investment Executive | Read More