Ponzi scheme saw more than $15 million snatched from over 80 victims across Canada and the U.S., including the accused's parents.
A self-professed fraudster has been permanently banned by the OSC after he admitted to losing more than $10 million of investors’ money – including his parents' life savings.
The OSC announced yesterday that an agreement had been reached with Kevin Warren Zietsoff, 41, who collected about $15.3 million from more than 80 victims across Canada and the U.S. – including his parents, friends and associates – between January 2006 and December 2012.
According to the settlement agreement, Zietsoff – who was never registered with the OSC – convinced investors he was a successful trader using a proven system based on the purchase of ‘low risk or risk free’ promissory note securities.
Through bad trading, Zietsoff lost more than $10 million of investors' money. The remaining $5 million, not lost on the markets, was paid out to investors as interest or repayment of the principal. Zietsoff’s parents lost their life savings of about $2.5 million as a result of their son’s Ponzi scheme.
Zietsoff pled guilty to one count of Fraud Over $5,000 in December and has admitted to securities fraud and agreed to the permanent banning from Ontario’s capital markets.
A sentencing hearing was scheduled for Tuesday in Toronto.
The OSC conducted the investigation alongside the RCMP, with assistance from the Arizona Corporation Commission.