OSC seeks to ban former fund industry exec

The Ontario Securities Commission (OSC) is seeking to permanently ban a former fund industry high flier based on his recent conviction for securities fraud and other offences.

The regulator issued a notice of hearing against David Singh, who at one time headed up a large mutual fund dealer, Fortune Financial Corp., and fund company, Infinity Investment Counsel Ltd. The OSC is seeking an interjurisdictional enforcement order, following Singh’s conviction in 2021 by the Ontario Court of Justice for engaging in fraud and the illegal distribution of securities.

According to the OSC’s allegations, on May 9, 2022, Singh was sentenced to three-and-a-half years in jail for securities fraud, along with concurrent nine-month sentences for failure to register and failure to file a prospectus, and ordered to pay $4.8 million in restitution.

The convictions stemmed from a scheme that raised over $5 million from 78 investors, ostensibly to invest in mortgages, through shares of Singh’s companies, Rockfort Mortgage Investment Corp. and Greenview Mortgage Investment Corp.

“However, neither Rockfort nor Greenview held any mortgages,” the OSC said in its allegations. “The [court] also found that Singh also had no intention to seek out mortgages.” The regulator said $4.8 million of investors’ money was never repaid.

“Many investors lost significant sums of money, often in excess of $100,000. Many lost their life savings, harming their ability to retire, and some investors lost their homes,” it said.

Based on the convictions, which involved securities, the OSC is now seeking an enforcement order from the Capital Markets Tribunal that would permanently ban Singh from trading, registration and acting as a director.

The proceeding is being brought as an expedited written hearing. Singh has 21 days to request an oral hearing, or 28 days to file a response.

In 1999, Singh was first sanctioned by the OSC in a settlement over alleged conflict of interest violations. In 2000, he agreed to a five-year ban as part of another settlement agreement with the regulator involving alleged supervisory failures at his fund dealer firm.

James Langton

James is a senior reporter for Advisor.ca and its sister publication, Investment Executive. He has been reporting on regulation, securities law, industry news and more since 1994.