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by Mike Caswell

Michael Wexler, an Ottawa man charged by the U.S. Securities and Exchange Commission for two pump-and-dumps on the U.S. markets, denies that he did anything wrong. He says that others, including since-banned Ontario lawyer Ashmit Patel, ran the schemes and that he was a victim of their fraudulent actions. He also claims that he did not sell "a single share" as part of the schemes.

The denials by Mr. Wexler come in response to charges he faces for the pump-and-dumps of VMS Rehab Systems Inc. and Argus Worldwide Corp. in 2016 and 2018. The SEC claims that Mr. Wexler, who was chief executive officer of the companies, issued news releases timed to coincide with market manipulation efforts of others. The news came amidst paid tout sheets that urged investors to buy, with lines such as "Latest M&A move could send this stock soaring by over 200%!"

As the SEC sees things, its case is strong enough that there is no need for a trial. The regulator has asked a judge to decide the matter summarily. For his part, Mr. Wexler denies any wrongdoing and says that the SEC's evidence is far from concrete.

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