The OSC alleges that Kotton used investor’s funds to purchase a home, luxury cars, and pay himself “excessive” management fees.
An Ontario Superior Court of Justice placed Titan in receivership at the behest of the OSC on November 16.
Kotton has a profile page as a broker, but it is unclear if he still practices. A FSCO web search returned no results for a license. He could not immediately be reached for comment.
An OSC-issued temporary cease-trade order against Titan and its CEO has been extended to December 17.
There are allegations of personal enrichment. There are excessive management fees of more than a million dollars,” The OSC alleges in a court filing. “A court-ordered Inspector discovered payments over a million dollars towards personal credit cards and vehicle expenses of $600,000 in an 18month period.
“There are no audited statements for 2014, no 2015 interim internal statements, and no corporate tax returns for any fiscal years.”
According to court documents, Titan has raised $30.7 million from 335 different investors since 2011.
The OSC alleges Titan engaged in unregistered trading; illegal distributions; misappropriation of investor funds; and giving misleading statements to investigators. Again, no charges have yet been laid.
Kotton contacted the Star to share his side of the story.
“They’ve taken my office. They sent a receiver to itemize every item in my home,” he told the publication. “They’re trying to liquidate everything before I have a (chance) to prove myself.”
Titan Equity Group and its CEO, Lance Kotton, are under investigation by the Ontario Securities Commission for allegedly misappropriating investor funds. No charges have in fact been made or those allegations yet proven in court.