TORONTO - An Ontario man who was previously sentenced to three years in prison for securities law violations in the Shallow Oil and Gas affair has received an additional six months in an unrelated case.
The Ontario Securities Commission says Abraham Grossman got the added jail time Tuesday after pleading guilty to two counts of breaching cease trade orders and one count of unregistered trading, contrary to the Securities Act.
Grossman admitted in an Ontario court that between October 2009 and February 2011, he and his Strategic Gifting Group ran a fundraising/donor introduction share gifting program.
The program involved the trading of Dixon Perot & Champion Inc. securities with four Ontario charities and approximately 50 donors in Ontario and elsewhere in Canada.
In exchange for arranging introductions between the charities and the donors, Grossman and Strategic Gifting were paid 90 per cent of the cash donations received by the charities.
Grossman then delivered returns in the form of DPC Securities to the donors in amounts that exceeded their original donations. Advisers recruited by Grossman to promote the program to the public were instructed to tell donors that they could receive tax receipts for four to 12 times the value of their original cash donation via DPC Securities.
A total of $332,620 was received by Strategic Gifting as a result of the scheme.
In addition to the jail time, Grossman was also sentenced to two years of probation and was ordered to pay $155,000 in restitution, the OSC said in a release.
In June 2011, Grossman was sentenced to three years in jail in for his part in the Shallow Oil and Gas case, which involved high pressure tactics to sell stock in the company.
The boiler room operation was started in the Toronto-area city of Markham in the fall of 2007 and was shut down by authorities in January 2008.
Two other men were sentenced to lesser terms in the Shallow case.
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