Tausi Insider

A lawyer representing Ontario’s securities regulator says three former executives whose cannabis company was caught growing pot in unlicensed rooms were in positions to disclose the improper growing but didn’t. Dihim Emami, a lawyer for the Ontario Securities Commission, said in a Toronto court today that by not disclosing the unlicensed growing at CannTrust Holdings Inc., Peter Aceto, Eric Paul and Mark Litwin caused “incredible” damage to investors. The three men have pleaded not guilty to a series of securities offences linked to the unlicensed growing at a Niagara, Ont. region facility, including fraud 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 charges were first laid by the OSC in June 2021, around the same time executives told shareholders the Vaughan, Ont. company was compliant with regul...

A former director of quality and compliance at CannTrust Holdings Inc. says the growth of cannabis in unlicensed rooms was discussed “very openly” at the pot company. Graham Lee told the Ontario court of justice’s Old City Hall court that the activity was not hidden or denied and was discussed on multiple occasions, even with members of the senior leadership team. His remarks come as three former executives at the cannabis company face a series of securities offenses. Peter Aceto, Eric Paul and Mark Litwin have pleaded not guilty to fraud 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 charges are linked to unlicensed growing that allegedly occurred at a Niagara, Ont. area facility owned by CannTrust, which is now called Phoena Holdings Inc. https://www.tausiinsider.com/former-canntrust-complian...

A former director of quality and compliance at CannTrust Holdings Inc. says he warned the company’s chief executive that Health Canada could levy penalties if the firm grew pot in unlicensed rooms at its Niagara, Ont. facility. Graham Lee says he told Peter Aceto he wasn’t sure what the exact consequences could be, but knew they were possible because Health Canada had previously issued warning letters and handed out penalties. For example, Lee said Health Canada checked CannTrust’s inventory every day after it discovered the company using a storage facility at its Vaughan, Ont. location contrary to licensing. Lee’s comments were made at the Old City Hall courthouse in Toronto, where the Ontario Securities Commission is working to prove Aceto and other execs are guilty of several offences related to unlicensed growing at the Niagara facility. Aceto, former CannTrust chairman Eric Paul and former vice-chairman Mark Litwin have pleaded not guilty to fraud and authorizing, permitting or ...

Former CannTrust CEO Peter Aceto, centre, leaves Old City Hall, in Toronto, on Dec. 14. Eduardo Lima/Tausi Insider An Ontario court has acquitted three former cannabis leaders charged with offences linked to unlicensed growing at a Niagara-area greenhouse. The ex-CannTrust Holdings Inc. executives Peter Aceto, Eric Paul and Mark Litwin were freed of their charges a day after the Ontario Securities Commission (OSC) revealed it no longer had a reasonable prospect of convicting the men. The OSC asked the Old City Hall court in Toronto on Wednesday to adjourn the matter until Thursday, so it could review case law Litwin’s lawyer said would support the case being wound up. His client, along with Aceto and Paul, were each charged with fraud and authorizing, permitting or acquiescing in the commission of an offence. Litwin and Paul were also facing insider trading charges, and Litwin and Aceto were charged with making a false prospectus and false preliminary prospectus. The men pleaded not ...

Former CannTrust CEO Peter Aceto, left, leaves the Old City Hall courthouse after being acquitted on all charges in Toronto on Dec. 15. Nathan Denette/The Canadian Press Legal experts say the acquittal of three former cannabis executives should prompt the Ontario Securities Commission to do some “deep soul searching.” The Thursday acquittal of ex-CannTrust Holdings Inc. CNTTQ chief executive Peter Aceto, chairman Eric Paul and vice-chair Mark Litwin came a day after the regulator revealed it no longer had a reasonable prospect of convicting the men on charges linked to alleged unlicensed cannabis growing at a Niagara area facility. The trio, who pleaded not guilty in October, were each charged with fraud and authorizing, permitting or acquiescing in the commission of an offence. Litwin and Paul were also facing insider trading charges, and Litwin and Aceto were charged with making a false prospectus and false preliminary prospectus. Industry observers were eagerly anticipating the ou...

Former CannTrust CEO Peter Aceto, left, leaves the Old City Hall courthouse after being acquitted on all charges in Toronto on Dec. 15. Nathan Denette/The Canadian Press Legal experts say the acquittal of three former cannabis executives should prompt the Ontario Securities Commission to do some “deep soul searching.” The Thursday acquittal of ex-CannTrust Holdings Inc. CNTTQ chief executive Peter Aceto, chairman Eric Paul and vice-chair Mark Litwin came a day after the regulator revealed it no longer had a reasonable prospect of convicting the men on charges linked to alleged unlicensed cannabis growing at a Niagara area facility. The trio, who pleaded not guilty in October, were each charged with fraud and authorizing, permitting or acquiescing in the commission of an offence. Litwin and Paul were also facing insider trading charges, and Litwin and Aceto were charged with making a false prospectus and false preliminary prospectus. Industry observers were eagerly anticipating the ou...