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ARTICLE · 11 OCTOBER 2019

Stung By Deceit: Re Natural Bee Works Apiaries Inc.

At the conclusion of a six day hearing, the Hearing Panel determined that Staff had succeeded in proving all of its allegations.

CanadaCorporate/Commercial Law

On July 3, 2019 the Ontario Securities Commission ("OSC") released its decision in Re Natural Bee Works Apiaries Inc., 2019 ONSEC 23 ("Natural Bee"). Natural Bee provides useful guidance concerning proof of falsity and participation in a fraudulent scheme under section 126.1(1) of the Ontario Securities Act (the "Act").

Background

In Natural Bee, OSC Staff alleged that Natural Bee Works Apiaries Inc. ("NBW"), Rinaldo Landucci ("Landucci"), its sole director, and Tawlia Chickalo ("Chickalo"), an employee of NBW who was at one point identified as its President, committed breaches of the Act including engaging in a course of conduct relating to securities that they knew or ought reasonably to have known perpetrated a fraud, and making misleading statements in marketing materials. In addition, Chickalo was alleged to have traded securities of NBW without registration and without a prospectus or a prospectus exemption.

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