You have landed at the web site of Alex Doulis, noted expert and best selling author on taxation, investing, banking and asset protection. What if you had been a wealthy Canadian of Japanese origin in or a Canadian of Ukrainian descent in ? All your assets would have been scooped up by the government and you would have ended up in a concentration camp and exited penniless. You can never know when you will be included in a group to be exploited. There is a new group of potential exploitation victims and those are women. There are few school systems which teach financial literacy and women of the past have left that pursuit to their male partners.
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No one appeared for Liberty Consulting Ltd. Doulis denies both allegations. Liberty did not participate in the proceeding. Doulis also called two investors to testify on his behalf, Investor One and Investor Two as defined below and presented a support letter provided by one of the investor witnesses the "Investor One Letter" , and an invoice sent to an investor who did not testify the "February Invoice".
Staff and Doulis filed written submissions, and preliminary matters and their oral closing submissions were heard on July 3 and 30, respectively. Doulis  Doulis is a Canadian citizen. He is also a citizen of Greece. On or about June , Doulis transferred his formal ownership of Liberty to a trust constituted under the laws of the Isle of Man on February 3, the "Paladin Trust".
Doulis is not currently registered with the Commission in any capacity and has not been registered under that Act after December 15, Exhibit 39 -- Volume 1B, Tab D, p. The Ontario government corporation profile report for Minotaur Capital dated August 13, , lists Doulis as director, secretary and president of Minotaur Capital beginning March 22, Sally Doulis, the spouse of Doulis, succeeded Doulis as president and secretary of Minotaur Capital on October 30, Minotaur Capital rents the Condominium to Liberty.
THE ISSUES  The two issues before me in the Merits Hearing are whether: a during the Material Time, each of the Respondents engaged in the business of advising with respect to investing in, buying or selling securities without being registered in accordance with Ontario securities law in any category of adviser, contrary to subsection 25 1 c of the Act in force until September 28, and subsection 25 3 of the Act in force as of September 28, the "Unregistered Advising" allegation ; and b between July and September , Doulis made statements to Staff that, in a material respect and at the time and in light of the circumstances under which they were made, were misleading or untrue or did not state facts that were required to be stated or that were necessary to make the statements not misleading, contrary to subsection 1 a of the Act.
The Merits Hearing is a hearing de novo, and Staff bears the onus of proving its allegations on a balance of probabilities. Although the issues in the Merits Hearing arise out of the same underlying facts and law as the issues in the Temporary Order Hearing, the findings in the Temporary Order Decision are not res judicata.
Staff referred us to F. In all civil cases, the trial judge must scrutinize the relevant evidence with care to determine whether it is more likely than not that an alleged event occurred. McDougall, supra, at para 46  In this matter, Staff makes serious allegations against each of the Respondents. Accordingly, I must be satisfied that there is sufficient clear, convincing and cogent evidence to support my finding.
I must scrutinize the evidence with care in deciding whether the alleged events are more likely than not to have occurred. The question that I must consider is whether the activities of Doulis and Liberty that are alleged to contravene the Act, as a whole, had a significant nexus to Ontario. Although the respondent had its head office in Montreal, mailed promotional materials and telephoned investors from Montreal, and directed investors to mail cheques for payment to Montreal, where it maintained its bank account, the investors resided outside Quebec.
The Supreme Court of Canada concluded that the respondent did carry on the business of trading in securities and acting as investment counsel in Quebec. The Supreme Court of Canada held that: The fact that the securities traded by [the] appellant would be for the account of customers outside of the province or that its weekly bulletins would be mailed to clients outside of the province, does not, as decided in the Courts below, support the submission that [the] appellant was not trading in securities or acting as investment counsel, in the province, within the meaning and for the purposes of the Act Respecting Securities.
The paramount object of the Act is to ensure that persons who, in the province, carry on the business of trading in securities or acting as investment counsel, shall be honest and of good repute and, in this way, to protect the public, in the province or elsewhere, from being defrauded as a result of certain activities initiated in the province by persons therein carrying on such a business.
Gregory, at pp. For example, in Re Patrick Fraser Kenyon Pierrepont Lett et al, , 27 OSCB "Re Lett" , the Commission found that the respondents had acted in furtherance of trades and that those acts occurred in Ontario, although there was no evidence that the trades involved investors in Ontario: The Respondents were all based in the Toronto area, had bank accounts in the Toronto area, [and] carried on business in the Toronto area. Most, if not all, of the documents referred to in the Agreed Statement of Facts and in the six volumes of documents composing the Joint Hearing Brief consist of documents that were either sent by the Respondents from the Toronto area or addressed to them in the Toronto area.
Re Lett at para 66  In addition, in Re Allen , 28 OSCB "Re Allen" , the Commission found that it had, jurisdiction over a trade in securities, notwithstanding that the purchaser was in a different province, provided that some substantial aspect of the transaction occurred within Ontario. A substantial portion of the activities surrounding the sales of these securities by the Respondents took place in Ontario.
The issuer is located in Welland, Ontario. The promotional materials were mailed from Toronto. The phone calls made by the Respondents were made from their Toronto offices and cheques in payment for the purchase of Andromeda securities were also sent to this location. C, as amended, even though some elements of the offences occurred outside Canada. In Re Libman, the Supreme Court also noted that an offence can occur in more than one place: Although offences are local, the nature of some offences is such that they can properly be described as occurring in more than one place.
This is peculiarly the case where a transaction is carried on by mail from one territorial jurisdiction to another, or indeed by telephone from one such jurisdiction to another.
This has been recognized by the common law for centuries. Re Libman, supra at para 53 citing R v W. McKenzie Securities Ltd. Promotional materials were mailed out from Costa Rica or Panama, investors were told to send their money to offices in Costa Rica or Panama, and Libman met with associates in Costa Rica and Panama to receive his share of the proceeds.
However, the "boiler room" was located in Toronto and some of the proceeds were wired back to Toronto. Staff submitted that during the Material Time, Doulis used the powers of attorney "POA s " he had over the brokerage accounts the "Client Accounts" of twelve individuals and corporations the "Clients" at Desjardins Securities Inc. The Respondents  Doulis submitted at the Merits Hearing that there is "no evidence whatsoever of any sort that Doulis advised anyone anywhere to buy a security" Hearing Transcript, July 30, , p.
Accordingly, there is no evidence of advising. Doulis maintains that both the office space that he was provided at the Liberty Office and the retainer he received from Liberty were not connected to his functions with the Clients.
Staff 1. The exhibits appended to the Masci Affidavits included, among other documents, the transcripts of the compelled examination of the Investor Witnesses, with appended exhibits, including new client application forms from Desjardins Securities, POA Forms, and correspondence with Doulis with respect to their investments. Transcripts  Staff included in its Hearing Brief, the transcripts of several compelled examinations of non-Respondents, which were obtained pursuant to section 13 of the Act, including those of the four Investor Witnesses who testified before me at the Merits Hearing, and were available to Doulis for cross-examination.
I regard the testimony of the Investor Witnesses at the Merits Hearing as the most cogent and reliable evidence. Accordingly, I have disregarded the transcripts of compelled examination of the Investor Witnesses, except where used to impeach their credibility.
Anderson  Anderson is an investigator employed with Staff of the Enforcement Branch of the Commission and for 15 years. The Desjardins Complaint Letter expressed that Desjardins Securities was concerned that Doulis was required to register under the Act in order to conduct himself with respect to the Client Accounts.
Staff also received, along with the Desjardins Complaint Letter, correspondences between Desjardins Securities and the Investor Witnesses, as well as correspondence that Desjardins Securities had received from or exchanged with Doulis. The Doulis Matter was previously assigned to two other investigators; i Don Panchuk, who subsequently, took on other duties within the Commission; and ii Masci.
Specifically, Anderson identified and Staff entered into evidence copies of two 2 passports each belonging to Doulis: one Canadian, issued on October 24, ; and one Greek, identifying Doulis as a Canadian and Greek citizen, respectively.
The Greek passport was issued on January 25, and expired on January 24, It also identified the residency status of Doulis as "Canada". On November 21, the "November 21, Email" Doulis sent an email to an address of Wilkinson, advising: Mark, The company will be settling a trust and the securities it holds will be transferred to the trust. I have instructed that the account will continue to be handled by yourself. I also have in my possession some certificates that are in the corporate name and as you know for which I have signing authority.
The acceptable manner in Canada would be for me to sign off on them and have my signature witnessed by Canadian bank [sic]. Seeing as the certificates will be registered in Canada I would suspect that that should suffice for your office. As a result Paladin Trust is being settled by a resident and citizen of Greece. The beneficiary will be a Canadian citizen. There will be not [sic] tax liabilities in Canada.
Elifthiria has a beneficial owner Alexander Christodoulidis, a Greek Citizen and resident. This is the settlor of the trust.
Liberty will have as a director, the beneficiary of the trust a Canadian citizen. The same applies to Powers of Attorney for securities. Can the existing KYC information you have for me be used to open the new account? I have a deadline of December 20th to have all of this wound up. He is the beneficial owner of Elifthiria. Elifthiria will be wound up as of the end of the year as it is settling its assets into the Paladin Trust.
Liberty will be the operating entity for the Paladin Trust. Macor, a company incorporated and existing under the laws of the Netherlands Antilles with its registered office in Pietermaai, Curacao, Netherlands Antilles the "Settlor" and ICSL Trustees Limited, a company incorporated and existing under the laws of the Isle of Man and having its registered office at Sovereign House, St.
Christos Doulis is listed as the protector for the time being of the Paladin Trust Indenture. The Paladin Trust Indenture states that "Protector" means "such person, or persons listed in Schedule Three hereof and such other person or persons as may from time to time be nominated or substituted by the settler giving notice in writing to the trustee". In the December 1, Letter, Doulis asked that Christos Doulis be provided with power of attorney over the Liberty Accounts to be able to do certain things including direct the purchase and sale of securities for the Liberty Account, and to direct the payment of cash balances in the Liberty Accounts as required.
In the December 1, Letter, Doulis stated that Christos Doulis will not have the ability to remove or place assets in the account. The document is signed by Doulis as president and sole director. Sally Doulis signed as witness. The company nature of business is said to be "Investment Holding. The notes also state: "the Elifthiria NV file contains further information concerning source of funds, which reveal that the source of funds is savings and the principle beneficiary is a retired partner and director of a Toronto Stock Exchange Firm -- details not supplied at this point in time  The document is signed by Wilkinson.
A corporate resolution for Liberty dated April 20, also authorizes Doulis, as president, "to sell, assign, and transfer securities registered in the name of Liberty Calibcon.
With regards to Liberty Consulting you should be aware that I am not 1 An employee of Liberty Consulting 2 A shareholder of Liberty Consulting 3 A director of Liberty Consulting and cannot therefore have any of the documents you request. For any documents that you may require of Liberty please consult the managing director. I therefore refuse to pay them until I have been fully reimbursed; they would like to seize my assets including any funds on deposit without paying their debt to me.
I therefore have no bank accounts anywhere or any assets in Canada You asked that I provide you with documents regarding Minotaur Capital. Again I have no positions. Therefore it will have to ignore the evidence and act to decree me as being something, either a dealer or advisor I would suggest that my qualifications and past portfolio performance would indicate that I am over qualified to be registered as either. I have signed forms admitting this. As an attorney I instruct brokers to buy and sell shares for my clients.
I do not discuss beforehand with the clients involved, the securities I am going to negotiate. I am an attorney not an adviser as I act I do not advise. The Act has nothing to say about attorneys. Therefore kindly desist from prying into my personal and business matters.
No one appeared for Liberty Consulting Ltd. Doulis denies both allegations. Liberty did not participate in the proceeding. Doulis also called two investors to testify on his behalf, Investor One and Investor Two as defined below and presented a support letter provided by one of the investor witnesses the "Investor One Letter" , and an invoice sent to an investor who did not testify the "February Invoice". Staff and Doulis filed written submissions, and preliminary matters and their oral closing submissions were heard on July 3 and 30, respectively. Doulis  Doulis is a Canadian citizen.
Take Your Money and Run!
Because it can. One of my favourite brain and body dead government organizations is the Ontario Securities Commission whose antics I have described previously. The organization was set up to enforce the Ontario Securities Act which has as its mandate the protection of investors and the guarantee of free and fair markets. IIROC acts to protect the investment industry and its clients. It has to because if there were to be a constant flow of information showing that there was disregard either by the industry or the investors of the best practices then confidence in the industry would fade as would its business. Remember that this was an industry based on contracts sealed with a handshake.
Lost on Bay Street
Nikomi They are therefore given great latitude to investigate, usually in secret, until such time as malfeasance can be proven. If anyone can find out who is the supplier connected to this technology I would love to take a punt on taking them public. He quit earning an income and went sailing for 15 years. Amazon Drive Cloud storage from Amazon.