OSC jails individual for securities fraud

The Ontario Securities Commission (OSC) has announced today Mr. Sydney Lederman of Toronto, Ontario, was sentenced to 90 days in jail and three years of probation by Justice M. Wong at the College Park-Ontario Court of Justice on April 13, 2018.

Following an investigation by the OSC’s Joint Serious Offences Team (JSOT) and prior to a trial, Mr. Lederman pled guilty on February 20, 2018 to a charge of Fraud Over $5,000 under the Criminal Code of Canada. This conviction relates to Mr. Lederman’s sale of securities in a company known as Bridgestone Resources Exploration Ltd. This conduct occurred between September 30, 2013 and September 30, 2015. The victim was a senior citizen who paid $90,000 for securities that Mr. Lederman fraudulently claimed were worth $3 million but, in fact, were worthless as Bridgestone Resources Exploration Ltd. is defunct.

Mr. Lederman used the funds received for his personal use. No funds were recovered. Mr. Lederman has been ordered to make restitution of the funds he fraudulently obtained from the victim.

To date, JSOT has pursued 40 matters involving 55 accused.

JSOT was established by the OSC as an enforcement partnership between the OSC, the Royal Canadian Mounted Police Financial Crime program and the Ontario Provincial Police Anti-Rackets Branch. The primary objective of JSOT is to protect investors and further enhance confidence in the Canadian capital markets through effective enforcement. This is accomplished through collaborative investigations of serious violations of the law using the provisions of the Securities Act or the Criminal Code.

The OSC’s partnership with law enforcement allows for criminal charges to be laid by JSOT members, which include police officers seconded to the OSC. Charges laid under the Criminal Code are prosecuted by the Ministry of the Attorney General.

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