Case involving former CannTrust leaders remanded until Sept. 20
Three former executives of CannTrust Holdings Inc. accused of securities charges related to an unlicensed growing scandal had their case remanded by an Ontario court until September.
During a virtual court session Monday, justice of the peaceWarren Ralphagreed to remand the case involving the cannabis company's former chief executive Peter Aceto, former vice-chairman Mark Litwin, and former chairman Eric Paul to Sept. 20.
Aceto, Paul and Litwin, who each face charges of fraud, making false or misleading statements and authorizing, permitting or acquiescing in the commission of an offence, were scheduled to have a first appearance at the Old City Hall court on Monday.
Litwin and Paul are also facing insider trading charges and Litwin and Aceto are charged with making a false prospectus and false preliminary prospectus.
The quasi-criminal charges were announced in June by the Ontario Securities Commission, roughly three years after CannTrust was found to be growing thousands of kilograms of cannabis in unlicensed rooms.
The OSC and Royal Canadian Mounted Police have claimed the accused did not disclose to investors that about 50 per cent of the growing space at CannTrust's Pelham, Ont. facility was not licensed by Health Canada and that they allegedly used corporate disclosures to assert that they were compliant with regulatory approvals.
They also allege that Litwin and Aceto signed off on prospectuses used to raise money in the U.S., which stated that CannTrust was fully licensed and compliant with regulatory requirements, and that Litwin and Paul traded shares of CannTrust while in possession of material, undisclosed information regarding the unlicensed growing.
Aceto was terminated for cause by CannTrust's board in July 2019, Paul resigned in response to a demand from the company's board at the same time and Litwin resigned in March 2021.
Dihim Emami, counsel for the Ontario Securities Commission, told the court Monday that a remand was being sought following discussions between himself and the accused's' lawyers.
"We have received initial disclosure in this matter and received it in a more accessible format just this past Friday," said Gerald Chan, a lawyer representing Paul.
"It's fairly voluminous and so we are going to need some time to digest what's been provided and for this reason, agreed with our friends to put this over to Sept. 20."
Anyone convicted of an Ontario Securities Act violation can be sentenced to up to five years in jail, issued a fine of up to $5 million, or both.
Chan previously told The Canadian Press in an email that "the evidence will show (Paul) did nothing wrong," while Aceto's lawyer Frank Addario has said his client is looking forward to a hearing "where the evidence will show that he acted with integrity at all times."
Litwin's lawyer Scott Fenton has said his client will "vigorously dispute" the charges because he "knows that at all times he fully complied with his legal obligations, including those under the Securities Act."
This report by The Canadian Press was first published July 26, 2021
CTVNews.ca Top Stories
'One of the single most terrifying things ever': Ontario couple among passengers on sinking tour boat in Dominican Republic
A Toronto couple are speaking out about their 'extremely dangerous' experience on board a sinking tour boat in the Dominican Republic last week.
Half of Canadians have negative opinion of latest Liberal budget: poll
A new poll suggests the Liberals have not won over voters with their latest budget, though there is broad support for their plan to build millions of homes.
opinion Why you should protect your investments by naming a trusted contact person
Appointing a trusted person to help with financial obligations can give you peace of mind. In his personal finance column for CTVNews.ca, Christopher Liew outlines the key benefits of naming a confidant to take over your financial responsibilities, if the need ever arises.
Teacher shortages see some Ontario high school students awarded perfect grades on midterm exams
Students at a high school in York Region have been awarded perfect marks on their midterm exams in three subjects – not because of their academic performances however, but because they had no teacher.
'My stomach dropped': Winnipeg man speaks out after being criminally harassed following single online date
A Winnipeg man said a single date gone wrong led to years of criminal harassment, false arrests, stress and depression.
Ottawa injects another $36M into vaccine injury compensation fund
The federal government has added $36.4 million to a program designed to support people who have been seriously injured or killed by vaccines since the end of 2020.
Photographer alleges he was forced to watch Megan Thee Stallion have sex and was unfairly fired
A photographer who worked for Megan Thee Stallion said in a lawsuit filed Tuesday that he was forced to watch her have sex, was unfairly fired soon after and was abused as her employee.
An Ontario senior thought he called Geek Squad for help with his printer. Instead, he got scammed out of $25,000
An Ontario senior’s attempt to get technical help online led him into a spoofing scam where he lost $25,000. Now, he’s sharing his story to warn others.
Her fiance has been in prison for 49 years. She's trying to free him before it’s too late
She was lying in bed on a Thursday morning, thinking about the man she loved, hoping to win his freedom before time ran out.