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22nd Floor
Toronto, ON M5H 3S8
Commission des
valeurs mobilières
de l'Ontario

December 21, 2017

OSC Charges Xiao Hua Gong (Edward Gong) with Criminal Fraud Offences

TORONTO – The Ontario Securities Commission (OSC) announced today that Xiao Hua Gong (also known as Edward Gong) of Toronto, Ontario has been charged with fraud and related offences under the Criminal Code of Canada (Criminal Code) following a lengthy investigation by the OSC’s Joint Serious Offences Team (JSOT).

Specifically, Gong has been charged with the following Criminal Code offences, spanning a period from January 1, 2012 to December 20, 2017:

  1. one count of fraud over $5,000 contrary to Section 380(1)(a);
  2. one count of possession of property obtained by crime contrary to Section 354(1);
  3. one count of laundering proceeds of crime contrary to Section 462.31; and
  4. one count of uttering a forged document contrary to Section 368(1)(b).

These allegations relate to the fraudulent sale of hundreds of millions of dollars of securities in two companies, O24 Pharma PLC (O24) and Canada National TV Inc. (CNTV), to Chinese citizens. The OSC alleges that both companies are controlled by Gong and the sale of their securities was orchestrated by Gong from the Greater Toronto Area (GTA).

The OSC further alleges that a significant percentage of the money obtained by this scheme was directed to Gong’s bank accounts in Canada which he then used for his personal benefit. 

On Thursday, December 21, 2017, OSC staff, the Royal Canadian Mounted Police and the Toronto Police Service executed search warrants on premises in North York, including Gong’s residence and alleged place of business.

JSOT Staff and police are seeking to arrest Mr. Gong.

The OSC conducted this investigation with assistance from members of the Economic Crime Investigation Department, Ministry of Public Security of the People’s Republic of China, the Northern Asset Recovery Unit, Financial Crime Group of the New Zealand Police and the Royal Canadian Mounted Police.  The OSC is grateful for the valuable support of these organizations and the help provided by members of the Toronto Police Service during the execution of the search warrants.

The OSC asks that anyone who invested in O24 or CNTV please call the OSC Contact Center at the number below.

JSOT was established by the OSC as an enforcement partnership between the OSC, the Royal Canadian Mounted Police Financial Crime program and the Ontario Provincial Police Anti-Rackets Branch. The primary objective of JSOT is to protect investors and further enhance confidence in the Canadian capital markets through effective enforcement. This is accomplished through collaborative investigations of serious violations of the law using the provisions of the Securities Act or the Criminal Code. 

The mandate of the OSC is to provide protection to investors from unfair, improper or fraudulent practices and to foster fair and efficient capital markets and confidence in the capital markets. Investors are urged to check the registration of any persons or company offering an investment opportunity and to review the OSC investor materials available at

To view this press release in Chinese, please click here.


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