By Norman De Bono
Troy Hogg, a former businessperson from Grand Bend, has been found guilty of committing fraud in a US$51.7 million cryptocurrency scheme by the Ontario Capital Markets Tribunal. The case revolves around the sale of a crypto asset known as Dignity, which was falsely marketed as being backed by gold.
The Ontario Securities Commission (OSC) launched the investigation into Hogg’s involvement with Cryptobontix and its related companies, including Arbitrade Ltd., a Bermuda-based corporation. The tribunal determined that Hogg, alongside his companies, had misrepresented the Dignity tokens to investors by falsely claiming they were backed by gold. The fraudulent actions included misappropriating the funds raised from the sale of these tokens for purposes unrelated to the original investment promises.
The ruling, issued on June 14, found that Hogg and his associates acted in violation of multiple sections of Ontario securities law. According to the tribunal, the fraud took place between May 2017 and June 2019, during which millions of dollars were raised based on false assurances and claims about gold backing.
The tribunal also noted that Hogg was the key figure in the operation, serving as the sole officer of Cryptobontix Inc. and other companies involved. He was also the majority shareholder and de facto director of Arbitrade Ltd. The Ontario Securities Commission had frozen and liquidated assets tied to Hogg, including the Colonial Inn and Gables Hotel in Grand Bend, as part of the ongoing investigation.
As of the latest ruling, Hogg has been given until July 2 to arrange a hearing regarding the sanctions or costs he may face due to the fraud. The tribunal will make a final decision by July 19, which could include penalties, trading bans, and fines.
The case has drawn attention due to the scale of the fraud and the involvement of several companies under Hogg’s leadership. Although the tribunal is not a court, the OSC can pursue quasi-criminal proceedings for violations of securities law and initiate civil suits in the Superior Court of Ontario.
The ongoing legal proceedings may result in further actions against Hogg and his associated entities, with the OSC seeking justice for defrauded investors.