IN THE MATTER OF THE SECURITIES ACT,
R.S.O. 1990, c. S.5, AS AMENDED
- AND -
IN THE MATTER OF PETER ROBINSON AND PLATINUM
INTERNATIONAL INVESTMENTS INC.
STATEMENT OF ALLEGATIONS
OF STAFF OF THE ONTARIO SECURITIES COMMISSION
Staff of the Ontario Securities Commission (“Staff”) make the following allegations:
1. Platinum International Investments Inc. (“Platinum”) is an Ontario corporation that was incorporated on June 12, 2007 with a registered address of 4325 Steeles Avenue West, Suite 215, Toronto, Ontario.
2. Peter Robinson (“Robinson”) is listed as the sole Director of Platinum.
- Trading in Securities by Platinum and Robinson
4. Throughout the Material Time, the Respondents were not registered in any capacity with the Ontario Securities Commission (the “Commission”).
5. During the Material Time, Robinson was prohibited from trading in securities by the Commission as a result of a temporary cease trade order originally made against Robinson, among others, on February 20, 2009 (the “Temporary Order”). The Temporary Order was extended on March 6, 2009 and July 10, 2009 and was in effect during the Material Time.
6. Residents of the United Kingdom (the “U.K. Residents”) received unsolicited phone calls from representatives of Platinum and were told that Platinum could sell securities held by the U.K. Residents on behalf of the U.K. Residents.
7. The representatives of Platinum told the U.K. Residents that they would be able to obtain significant amounts of money for the U.K. Residents when Platinum arranged for the sale of the securities in question.
8. The U.K. Residents were then told that they would have to pay “performance bonds” and “non-resident taxes” to Platinum before Platinum could complete the sale of the securities.
9. The U.K. Residents were given instructions to send their funds for the “performance bonds” and the “non-resident taxes” to a bank account held in the name of Platinum and located in Toronto at the Royal Bank of Canada (the “Platinum RBC Account”).
10. The U.K. Residents sent their “performance bond” and “non-resident tax” funds via wire transfer to the Platinum RBC Account.
11. The U.K. Residents were subsequently approached and advised they would have to pay further fees so that the transactions could proceed. When the U.K. Residents refused to send further funds to the Platinum RBC Account they stopped receiving communications from representatives of Platinum.
12. None of the transactions for which the U.K. Residents wired funds to the Platinum RBC Accounts have been completed. At least one of the U.K. Residents has been unable to contact Platinum since the Material Time.
13. During the Material Time, Robinson made numerous cash withdrawals from the Platinum RBC Account.
14. The Respondents participated in acts, solicitations, conduct, or negotiations directly or indirectly in furtherance of the sale or disposition of securities for valuable consideration, in circumstances where there were no exemptions available to the Respondents under the Securities Act, R.S.O. 1990, c. S. 5, as amended (the “Act”).
- Fraudulent Conduct
- that Platinum could sell securities held by the U.K. Residents for significant premiums over the current market value of the securities;
- that Platinum had received funds from the purported purchasers of the securities held by the U.K. Residents and that these funds were being held under “escrow conditions”;
- that within seven business days of the U.K. Residents providing a “performance bond” they would receive all of the funds for the sale of the securities of their securities;
- that certain U.K. Residents were offered a five percent discount on a “non-resident tax” because the U.K. Residents were over sixty-five years old; and
- one of the U.K. Residents was provided with an address that did not correspond with Platinum’s registered address and was, in fact, a United Parcel Service store;
- telephone numbers provided to the U.K. Residents were registered as cellular phones from addresses in the State of Florida, United States.
17. Once funds were wire transferred from the U.K. Residents to the Platinum RBC Account the funds were almost immediately withdrawn as cash or cheques, which were primarily payable to Robinson, his other companies, or David O’Brien Professional Legal Corp.
18. The Respondents and other employees, representatives or agents of Platinum engaged in a course of conduct relating to securities that they knew or reasonably ought to have known would result in a fraud on persons.
III. Conduct Contrary to Ontario Securities Law and Contrary to the Public Interest
19. The specific allegations advanced by Staff are:
- During the Material Time, the Respondents engaged or participated in acts, practices or courses of conduct relating to securities that the Respondents knew or reasonably ought to have known perpetrated a fraud on persons or companies, contrary to section 126.1(b) of the Act and contrary to the public interest;
- During the Material Time, the Respondents traded in securities without being registered to trade in securities, contrary to section 25(1)(a) of the Act and contrary to the public interest;
- During the Material Time, Robinson, being a director or officer of Platinum, did authorize, permit or acquiesce in the commission of the violations of sections 25 and 126.1 of the Act, as set out above, by Platinum or by the employees, agents or representatives of Platinum, contrary to section 129.2 of the Act and contrary to the public interest; and
- During the Material Time, Robinson violated Ontario securities laws by breaching the Temporary Order, contrary to section 122(1)(c) of the Act and contrary to the public interest.
DATED at Toronto, 17 December, 2009.