Temporary Order: In the Matter of Global Consulting and Financial Services et al.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

WHEREAS it appears to the Ontario Securities Commission (the “Commission”) that:

 

 

1. Global Consulting and Financial Services (“Global”) is a sole proprietorship registered by Jan Chomica in the Province of Ontario;
2. Crown Capital Management Corporation (“Crown”) is an Ontario corporation that was incorporated in 1992;
3. Peter Kuti (“Kuti”) is listed in Ontario corporate records as the sole registered Director of Crown commencing April 30, 2010. Kuti is also listed as the President and Secretary of Crown;
4. Michael Chomica was the sole Director of Crown until April 30, 2010;
5. In 1999, Michael Chomica set up a bank account in Ontario for Crown and held himself out as the President and Owner of Crown;
6. Canadian Private Audit Service (“CPAS”) is not incorporated in Ontario and there are no records of CPAS being a registered business in Ontario;
7. Executive Asset Management (“EAM”) is not incorporated in Ontario and there are no records of EAM being a registered business in Ontario;
8. Global, Crown, CPAS, and EAM appear to be involved in a fraudulent advance fee scheme in relation to securities whereby Global, Crown, CPAS, EAM and their representatives, in concert with other persons, entities, and/or companies, defraud residents of Canada, the United Kingdom, and the United States (the “Investors”);
9. Some of the Investors have been contacted by individuals claiming to be employees of the United States Securities and Exchange Commission (the “SEC”) and representatives or employees of the Commission;
10. Staff have determined that the names used for the purported employees of the SEC and the Commission are false and there are no such employees at either organization;
11. The fraudulent SEC and Commission representatives directed the Investors to pay the advance fees to Global bank accounts situated in Toronto;
12. Individuals claiming to be representatives of CPAS and EAM also contacted Investors in connection with these advance fee schemes. These representatives also directed that funds be deposited into Global bank accounts situated in Toronto;
13. Fraudulently obtained funds were also directed to a bank account in Hong Kong in the name of Belmont Group Limited;
14. Michael Chomica and Banks are residents of Toronto and appear to have been contacting the Investors from a premise located in Toronto;
15. Global, Crown, CPAS, EAM, Jan Chomica, Michael Chomica, Kuti and Banks are not registered in any capacity with the Commission;
16. Global, Crown, CPAS, and EAM and their representatives and related entities appear to be targeting some of the Investors who previously purchased the following securities: Remington Ventures Inc., Pan Gen Global PLC, New Hudson Television Corporation, Cancer Detection Corporation, Avitech Life Sciences Inc., VLF Royal Petroleum Inc., Dixon, Perot and Champion Inc., Wildwood Management Limited and Royal Petroleum Inc.;
17. Staff are conducting an investigation into the trading of securities, and it appears that Global, Crown, CPAS, EAM, Jan Chomica, Michael Chomica, Kuti, and Banks may have engaged in the following conduct:
    1. trading in securities without registration, contrary to section 25 of the Act;
    2. being directors or officers of a company or of a person other than an individual who authorizes, permits or acquiesces in the commission of violations of Ontario Securities Laws contrary to section 122(3) or 129.2 of the Act; and
    3. engaging or participating in acts or a course of conduct relating to securities that they knew or ought to have known perpetrated a fraud on any person or company contrary to section 126.1 of the Act.

AND WHEREAS the Commission is of the opinion that the time required to conclude a hearing could be prejudicial to the public interest as set out in s. 127(5) of the Act;

AND WHEREAS the Commission is of the opinion that it is in the public interest to make this order;

AND WHEREAS by Commission order made November 1, 2010, pursuant to section 3.5(3) of the Act, each of James E. A. Turner, Kevin J. Kelly, Carol S. Perry, Patrick J. LeSage, James D. Carnwath and Mary G. Condon, acting alone, is authorized to make orders under section 127 of the Act;

IT IS ORDERED, pursuant to clause 2 of subsection 127(1) of the Act, that Global, Crown, CPAS, EAM, Jan Chomica, Michael Chomica, Kuti and Banks cease trading in all securities; and

IT IS FURTHER ORDERED pursuant to clause 3 of subsection 127(1) of the Act that any exemptions contained in Ontario securities law do not apply to Global, Crown, CPAS, EAM, Jan Chomica, Michael Chomica, Kuti and Banks;

IT IS FURTHER ORDERED pursuant to subsection 127(6) of the Act that this order shall take effect immediately and shall expire on the fifteenth day after its making unless extended by order of the Commission.

 

Dated at Toronto this 4^th day of November, 2010