The OSC has issued sanctions against Marlon Gary Hibbert, Ashanti Corporate Services Inc., Dominion International Resource Management Inc., Kabash Resource Management and Power To Create Wealth Inc. (the respondents).
On April 4, 2012, the Commission found Hibbert misled staff and perpetrated fraud on investors. OSC also found the respondents traded in securities and acted as advisors without registration, engaged in an illegal distribution of securities and acted contrary to public interest.
Now, OSC states Hibbert “engaged in an ongoing course of deceitful and fraudulent conduct … at the expense of innocent investors.”
Among some of OSC findings, Hibbert:
- Misappropriated funds for the benefit of himself and his wife, transferring approximately $673,000.
- Accepted and deposited investors’ funds into the bank accounts of corporate respondents located in Canada;
- Created and posted a video clip touting the benefits of investing in Power to Create Wealth Inc. and promising a rate of return up to 79.4% a year;
- Lied to investors by saying he was successful in trading in foreign exchange.
In its decision, the OSC stated, “By virtue of Hibbert’s deceptions and untruths, many investors lost their entire investment. To date, they are owed more than $8.2 million in principal, to say nothing of the promised returns of more than $13 million.”
As such, the Commission has removed the respondents from the Ontario capital markets and permanently banned Hibbert from acting as a director or officer in securities.
Hibbert has been ordered to disgorge $4,672,779.98, which the respondents obtained as a result of the fraud. He must also pay an administrative penalty of $750,000 and pay $200,000 to the Commission.