Stéphane Gagnon promised to help people access funds in their locked-in retirement accounts if they invested the money in his company but used a significant portion of the proceeds for other purposes, Ontario Securities Commission says.Fred Lum/The Globe and Mail
Ontario’s securities watchdog says a former Ottawa resident who targeted hundreds of investors across the country has been sentenced to five years in prison and ordered to pay back more than $7.75-million in fraud proceeds.
The Ontario Superior Court of Justice in Toronto convicted Stéphane Gagnon of fraud over $5,000 and using a forged document, the Ontario Securities Commission said Wednesday.
Mr. Gagnon received more than $20-million from more than 300 investors across Canada between Aug. 1, 2015, and May 31, 2021, he admitted in a statement to the court.
He promised to help people access funds in their locked-in retirement accounts if they invested the money in his company, but wound up using a significant portion of the proceeds for other purposes, the OSC said. He also admitted to forging legal letters.
The charges stem from his role as the sole officer and director of 8565287 Canada Inc., which operated under several names, including Unlock My RSP, SMAP Financial Service, the Loan Shop and the Finance Company.
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The OSC’s Criminal Investigations and Prosecutions team brought the case.
Mr. Gagnon was arrested in Bali in 2023, after Interpol contacted police there to inform them he was wanted on forgery and fraud charges, according to The Jakarta Post.
“Today’s decision is a significant outcome for Ontario’s investors who were harmed by Mr. Gagnon’s actions,” Bonnie Lysyk, the OSC’s executive vice-president of enforcement, said in a statement.
“Where the OSC sees evidence of harm, we will take action to protect investors, and the integrity of our capital markets. We are pleased with the judgment of the Superior Court and thank everyone involved in this case.”