OSC secures securities fraud conviction

The operator of an alleged fraud scheme has pleaded guilty to charges brought by the Ontario Securities Commission (OSC).

Last August, the OSC charged Jimmy Delinis with securities fraud in connection with his purported investment fund, Azura Futures and Currencies — which allegedly duped investors by claiming to generate high monthly returns, when, in fact, it was constantly losing money.

Specifically, the OSC alleged that between Oct. 1, 2021, and July 31, 2024, the scheme raised at least $1.3 million from investors in the U.S. and Canada — providing investors with statements that “typically portrayed the funds as highly successful, often claiming returns that exceeded major stock market indexes by at least 10%.”

However, the OSC alleged that the fund lost about 81% of the money deposited into its trading account on failed options trades. And, it said, that, in some cases, investors’ money was used to repay other investors.

“As a result, most investors lost their entire investment,” the OSC said.

Originally, the OSC alleged that the scheme raised $2.9 million from investors, however the alleged amount was cut to $1.3 million as part of plea deal.

“While the commission believes there was sufficient evidence to lay charges based on a fraud involving $2.9 million of investor funds, the amount was reduced during the plea proceedings to reflect the financial impact on the 15 investors who had agreed to participate in the litigation process,” said Curtis Lindsay, senior public affairs specialist at the OSC, in a statement.

Now, Delinis has pleaded guilty to fraud, in breach of securities law.

He is scheduled to be sentenced on October 15 at the Ontario Court of Justice.

James Langton

James is a senior reporter for Advisor.ca and its sister publication, Investment Executive. He has been reporting on regulation, securities law, industry news and more since 1994.