“In the agreed statement of facts, filed as part of the criminal proceedings, Derek Scheinman admitted to having created fictitious mortgages and embezzled $13 million” from the company, the court reported in its decision.
Some of these funds were paid to investors in the syndicated mortgage investment scheme, who also ended up being defrauded. “However, most of the funds were misappropriated for personal expenses and to finance Derek Scheinman’s lavish lifestyle,” the court said.
In 2021, Derek Scheinman was sentenced to four years in prison, minus four months.
The court also ordered that Derek Scheinman, who was previously registered as a mutual fund representative and limited market broker representative, be permanently banned from Ontario’s capital markets, after finding that his conviction concerned securities and that it was in the public interest to ban it from the markets.
“As a former registrant, he knew or should have known that his conduct was contrary to the Act [sur les valeurs mobilières] “, affirmed the panel.
“His behavior shows that he cannot be trusted. A permanent ban on capital markets is necessary to protect investors by preventing Derek Scheinman from behaving in a manner detrimental to the integrity of capital markets in the future,” the Commission concluded, adding that a permanent ban also a deterrent effect on other people.
2023-11-28 13:19:06
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