In a release dated August 2, the OSC announced that Sydney Klein from Thornill has been sentenced to two years of probation with conditions at the Ontario Court of Justice in Newmarket, Ontario.
Under the conditions of Klein’s probation, he is required to cease trading in securities; to refrain from acting in, and to resign from, any officer or director positions in any corporation registered in Ontario or Canada; and to refrain from calling any place in or outside of Canada for the purpose of trading in any security.
The sentence comes after an investigation by the OSC’s Joint Serious Offences Team (JSOT). A JSOT search warrant was executed in April 2015, alleging that Klein and another man, Charles Joseph Makuto, were operating a boiler room outfit known as Dorchester International Group Inc. in Markham, Ontario.
The allegation states that Klein and Makuto used dormant shareholder lists to fraudulently solicit investors by telephone. Told that their worthless penny stock holdings might have future value, victims were solicited to purchase portfolio research reports that were of no value.
Klein was charged in November 15, and he pleaded guilty to one count of defrauding the public, contrary to Section 380(1)(b) of the Criminal Code. The release makes no mention of any plea made by Makuto.
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