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
India's foreign minister reacts to murder charges, claims Canada welcomes criminals
India's Foreign Affairs Minister accused Canada of welcoming criminals from his country in response to the RCMP's recent arrests in a homicide that has roiled tensions between the two countries.
15-year-old boy stabbed in Ottawa on Thursday dies
A 15-year old boy who was critically injured after a stabbing in Nepean on Thursday has died of his injuries, Ottawa's English public school board said Sunday.
Dash cam catches moment suspected drunk driver hits parked car, sends it careening into North Shore flower shop
Police say it’s fortunate no one was injured or killed in a collision at North Vancouver’s Park and Tilford shopping centre Saturday evening that sent one vehicle careening into a flower shop and another into a set of concrete barriers outside a Winners store.
'A tiny city:' Pro-Palestinian campus protesters organize for another week
Pro-Palestinian activists have set up tents at universities in Toronto, Ottawa, Vancouver and Montreal, following a wave of similar protests at campuses in the United States linked to the Israel-Hamas war.
Lawsuit against Meta asks if Facebook users have right to control their feeds using external tools
Do social media users have the right to control what they see — or don't see — on their feeds?
Princess Anne lays wreath at Battle of Atlantic ceremony; honours late Queen
Princess Anne saluted Canadian veterans and current forces members and honoured her late mother during separate ceremonies Sunday in Victoria as she wrapped up a three-day British Columbia West Coast royal visit.
El Nino weakening doesn't mean cooler temperatures this summer, forecasters say
As Canadians brace themselves for summer temperatures, forecasters say a weakening El Nino cycle doesn’t mean relief from the heat.
As storms moves across Texas, 1 child dies after being swept away in floodwaters
A child in Texas died Sunday after being swept away in floodwaters as storms swept across the state.
Nylander defends Leafs' core after playoff exit, Toronto again picks up the pieces
The Maple Leafs battled back from a 3-1 series deficit against the Boston Bruins with consecutive 2-1 victories - including one that required extra time - in their first-round playoff series to push the club's Original Six rival to the limit before suffering a devastating Game 7 overtime loss.