The OSC finds Shaun Gerard McErlean and Securus Capital breached the Ontario Securities Act by raising $14 million from eight offshore investors.

The OSC panel says McErlean and Securus traded securities and advised investors without being registered and without filing a prospectus with the Commission.

McErlean told investors their money would be segregated in a separate account and would be used as collateral for investments in guaranteed, high return trading.

None of the money, however, was kept separate and apart from the Securus bank account, and was not used as promised. He used the funds to repay previous investors and to invest in private companies he or his family had a financial interest in.

Further, he used screen shots and false bank account numbers to deceive investors into thinking their funds were separate and secure.

The panel ordered the parties to appear before it on August 13, 2012 to set a date for a hearing.