Former CannTrust leaders to make first court appearance following fraud charges
Mature cannabis plants are photographed at the CannTrust Niagara Greenhouse Facility during the grand opening event in Fenwick, Ont., on June 26, 2018. THE CANADIAN PRESS/Tijana Martin
The Canadian Press
Published Monday, July 26, 2021 5:23AM EDT
VAUGHAN, Ont. -- Three former executives of CannTrust Holdings Inc. are expected to appear in an Ontario court today as they face charges related to an unlicensed growing scandal.
The cannabis company's former chief executive Peter Aceto, former vice-chairman Mark Litwin, and former chairman Eric Paul each face charges of fraud, making false or misleading statements and authorizing, permitting or acquiescing in the commission of an offence.
Litwin and Paul are also facing insider trading charges and Litwin and Aceto are charged with making a false prospectus and false preliminary prospectus.
The Ontario Securities Commission and Royal Canadian Mounted Police announced the charges in June, roughly three years after CannTrust was found to be growing thousands of kilograms of cannabis in unlicensed rooms.
The OSC and RCMP allege the accused did not disclose to investors that about 50 per cent of the growing space at CannTrust's Pelham, Ont. facility was not licensed by Health Canada and that they allegedly used corporate disclosures to assert that they were compliant with regulatory approvals.
Someone convicted of an Ontario Securities Act violation can be sentenced to up to five years in jail, issued a fine of up to $5 million, or both.
This report by The Canadian Press was first published July 26, 2021.