This item is part of Stockwatch's value added news feed and is only available to Stockwatch subscribers.

Here is a sample of this item:

by Mike Caswell

The Ontario Securities Commission has filed a securities fraud case against former Canadian Securities Exchange listing SponsorsOne Brands Inc. and its directing minds, Gary and Myles Bartholomew, claiming that they improperly issued 1.2 billion shares to supposed marketing consultants. Those consultants sold the stock on the market and funnelled $24-million in proceeds for the benefit of SponsorsOne or the Bartholomews, the OSC says. As part of the scheme, the men concealed the truth about the issuances, according to the OSC.

The allegations are contained in an application that the OSC released on Monday, March 30. The application lists Myles Bartholomew as the president and directing mind of SponsorsOne Brands. Gary Bartholomew, who is Myles's father, was the company's chairman and architect of the scheme, according to the application. Both men are residents of Ontario.

The case, as set out by the OSC, arises from a series of consulting agreements that SponsorsOne entered into with private entities incorporated in Alberta, British Columbia, Switzerland and the Cayman Islands in 2020 and 2021. According to the application, the stated job of the consultants was to help raise money and provide "strategic marketing services including influencer marketing, social media strategies, content creation and engagement." In reality, the consultants did no actual marketing work, the OSC claims.

The remainder is available to Stockwatch subscribers.
Sign-up for a FREE 30-day Stockwatch subscription and SEE NO ADS