Following an order permanently banning USI-Tech from operating in Ontario, Canada, the Ontario Securities Commission has published detailed reasoning behind its decision.

The reasoning includes an email from USI-Tech management that throws their Canadian affiliates under the bus.

USI-Tech’s problems in Ontario began a year ago, after the Securities Commission issued a cease trader order against it in February 2018.

USI-Tech was initially represented by legal counsel in the matter, however their lawyers bailed on them in September 2018.

No reason for the withdrawal was given, other than that it was at the law firm’s request.

The Securities Commission opted to conduct the USI-Tech case through a written hearing, and informed the company on December 5th.

On December 11th USI-Tech sent a reply email back to the commission, signed off on by “USI-Tech Management”.

In the email USI-Tech Management tried to get out of the cease and desist by stating;

  • USI-Tech “never sold products directly in Canada” because “all sales were made through local independent traders”;
  • USI-Tech investors were to blame because they agreed to terms and conditions that stated USI-Tech “products may not be purchased in violation of “regional prohibitions””
  • USI-Tech has no Canadian office;
  • USI-Tech undertook “no marketing activities specifically targeting the
    Canadian market”;
  • after the cease and desist was issued USI-Tech blocked access to its website from Canadian IP addresses; and
  • going forward USI-Tech “will not conduct any activity in Canada”.

The part about the terms and conditions stating USI-Tech investment products is  somewhat amusing, seeing as USI-Tech weren’t registered to offer securities in any jurisdiction they operated in.

After considering USI-Tech Management’s email, the Securities Commission ruled that nothing in it justified securities fraud.

And that lead us to the permanent banning of USI-Tech in Ontario on January 15th.

The collapse of the USI-Tech Ponzi scheme is believed to have generated tens of millions of dollars in investor losses at least.

To this day USI-Tech’s owners, management and top promoters remain at large.