OSC v. Derek Scheinman (ponzi schemes, 2023)

Judgment entered

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In September 2023 the Ontario Securities Commission began a reciprocal proceeding against Derek Scheinman, who pleaded guilty to two counts of fraud over $5,000 involving about $23 million, and on November 13, 2023 imposed permanent market bans.

The record

What was ordered

Civil penalty

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Disgorgement

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Prejudgment interest

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Total relief

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Alleged gain

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A dash means the release did not state a figure we could extract, not that the figure is zero. Penalty and disgorgement are stored separately so aggregates across the library do not double-count the same dollars.

What is alleged to have happened

Scheinman ran DMS Financial Management and was sentenced in September 2021 to four years less credit for time served. The allegations describe two frauds: about $13 million taken from the partners in a mortgage partnership, with fictitious mortgages, and a separate New Horizon scheme in which he paid older investors from newer investors' money and took about $10 million.

The order of November 13, 2023 bans him permanently from trading, acquiring securities, relying on exemptions, serving as a director or officer, and acting as a registrant or promoter. The record showed the matter only as filed.

This library tags the matter as ponzi schemes because the tribunal or the court it relies on describes money from later investors being used to pay earlier ones. The tagging is ours, not the regulator's: agencies charge statutory provisions, not technique names.

What technique is this, and how does it work?

This action is tagged with one technique in our taxonomy. The tagging is ours: regulators charge statutory provisions, not technique names, so the mapping is an editorial judgement described in our editorial policy.

• Ponzi schemes — see how it works, what statute it engages, and every other action tagged the same way.

Timeline

1. 2023-09-06 Notice of Hearing
2. 2023-09-06 Statement of Allegations
3. 2023-11-13 Reasons and Decision
4. 2023-11-13 Reasons and Decision

Primary documents

Everything on this page derives from the documents below. Where our summary and the primary document disagree, the primary document is right.

• Tribunal proceeding
• Notice of Hearing
• Statement of Allegations
• Reasons and Decision
• Reasons and Decision

The linked release is published by the issuing regulator under its own terms. Our summary and narrative above are our own writing.

Related actions

Other actions in the library sharing at least one technique tag with this one.

Record added September 10, 2026. submit a correction.