Ponzi perpetrators get permanent trading ban

A pair of convicted fraudsters — including a woman who previously pleaded guilty to violating a 15-year trading ban — has been permanently banned by Ontario’s Capital Markets Tribunal.

The Ontario Securities Commission (OSC) brought an enforcement action against April Vuong and Hao Quach, citing their fraud convictions in connection with a $5.2-million Ponzi scheme.

In 2018, Vuong and Quach were convicted in the Ontario Superior Court of Justice in connection with a “large-scale and sophisticated fraud” that raised money from investors with a promise of high returns, but used some of the investors’ money to pay returns to earlier investors, as well as for personal expenses.

After being convicted, they were sentenced to five years, eight months, and 19 days in jail, and ordered to pay $3.6 million in restitution.

Vuong and Quach appealed their convictions and sentences, but those appeals were dismissed.

In a separate case, Vuong was also sentenced to 12 months in jail after pleading guilty to violating a 15-year trading ban that was imposed by the OSC in 2013.

They did not participate in the OSC’s latest action against them.

“Their conduct demonstrates that Vuong and Quach cannot be trusted. A permanent ban from the capital markets is required to protect investors by restraining future conduct by Vuong and Quach that would be detrimental to the integrity of the capital markets,” the tribunal said in its decision to ban the pair permanently.

“A permanent ban is also necessary to act as a general deterrent to other like-minded individuals who might be inclined to engage in similar conduct,” it added.

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.