Between Jan. 1, 2018, and Aug. 8, 2019, Peblik raised approximately $480,000 from 32 investors, all of whom lost their money. The company had previously told the OSC that no sales had been made to Ontario residents.

Appeal raises legal questions

The case followed a lengthy legal process. The Ontario Court of Justice initially found Katmarian not guilty on all four charges, including fraud, misleading investors, unregistered trading and illegal distribution. The OSC appealed three of the four acquittals. The Ontario Superior Court of Justice upheld two acquittals but set aside the acquittal on the fraud charge, ruling that the trial judge had erred by requiring the OSC to prove that investors’…