The Ontario Securities Commission (OSC) has fined and permanently banned Shaun Gerard McErlean for defrauding international investors of over C$10 million.
An OSC disciplinary panel found that McErlean convinced six foreign investors to send funds to his company, Securus Capital Inc., for the purpose of investing in guaranteed, high-return securities. Instead, McErlean used the funds to pay personal debts and to invest in businesses in which he and his family had financial interests.
"Mr. McErlean’s actions demonstrate a clear intention to deceive investors and use their money, at least in part, to substantially improve the financial position of himself and his family," the panel's decision stated.
In total, McErlean raised approximately $10.2 million, but paid back C$1.3 million, resulting in C$8.9 million in losses. The panel ordered him to disgorge the remaining C$8.9 million to the OSC. Additionally, McErlean and Securus must each pay $500,000 in penalties. McErlean was also
This article is only available in full to Compliance Complete
North America Subscribers who are logged in.
Please log in to see if you can view this content.