Former CannTrust executives to appear in court for the first time over fraud charges – .

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Former CannTrust executives to appear in court for the first time over fraud charges – .


VAUGHAN, Ont. – Three former executives of CannTrust Holdings Inc. are scheduled to appear in Ontario court today as they face charges related to a growing license-free scandal.

Former cannabis company chief executive Peter Aceto, former vice chairman Mark Litwin and former chairman Eric Paul each face charges of fraud, false or misleading statements, and authorization, permission or acquiescence in the commission of an offense.

Litwin and Paul also face insider trading charges and Litwin and Aceto are accused of making a fake prospectus and a fake preliminary prospectus.

The Ontario Securities Commission and the Royal Canadian Mounted Police announced the charges in June, about three years after CannTrust was found to be growing thousands of kilograms of cannabis in unlicensed rooms.

The OSC and the RCMP allege the accused failed to disclose to investors that approximately 50 percent of the grow space at Pelham in CannTrust, Ontario. the facility was not licensed by Health Canada and allegedly used corporate disclosures to claim compliance with regulatory approvals.

A person convicted of an offense under the Ontario Securities Act can be sentenced to up to five years in prison, a fine of up to $ 5 million, or of them.

This report by The Canadian Press was first published on July 26, 2021.

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