Offender admits he used forged lawyers’ letters to keep business relationship
The Ontario Superior Court of Justice found a former Ottawa resident guilty of one count each of the following Criminal Code charges: fraud over $5,000 under s. 380(1)(a) and using a forged document under s. 368(1).
In a news release, the Ontario Securities Commission (OSC) shared that the Toronto court sentenced Stéphane Gagnon to five years imprisonment minus time served.
The court ordered him to pay more than $7.75 million as the entire net amount of the fraud, as well as victim restitution and a fine in place of forfeiture. The OSC noted that he could serve additional time if he failed to pay the fine.
“Today’s decision is a significant outcome for Ontario’s investors who were harmed by Mr. Gagnon’s actions,” said Bonnie Lysyk, the OSC’s executive vice president of enforcement, in the news release.
According to the OSC, in an agreed statement provided to the court, Gagnon admitted that he:
The news release noted that the OSC’s criminal investigations and prosecutions team commenced this case.
“Where the OSC sees evidence of harm, we will take action to protect investors, and the integrity of our capital markets,” Lysyk said. “We are pleased with the judgment of the Superior Court and thank everyone involved in this case.”
The criminal investigations and prosecutions team – which is part of the OSC’s enforcement division – works with police and law enforcement agencies to investigate securities fraud, market manipulation, and related misconduct, repeat offences, and breaches of orders and bans of the courts or the Capital Markets Tribunal.
The team seeks to safeguard investors and promote confidence in Canada’s capital markets via effective enforcement. In its news release, the OSC said it prosecutes charges under Ontario’s Securities Act, 1990, while the attorney general’s ministry prosecutes those under the Criminal Code, 1985.
The OSC aims to help keep investors safe from unfair, improper, or fraudulent practices; ensure capital markets are fair, efficient, competitive, and trustworthy; promote capital formation; improve the financial system’s stability; and decrease systemic risk.
