The Ontario Securities Commission announced that Kevin Carmichael has been sentenced to four years in jail for defrauding investors in Strike Holdings Inc., making misleading statements to investors, and trading securities without registration. The court also ordered restitution of CAD 22.7 million to harmed investors. Carmichael, a director and officer of Strike Holdings and KM Strike Management, pleaded guilty in the Ontario Court of Justice on January 8, 2025. The OSC said the case was brought by its Criminal Investigations & Prosecutions team with investigative support from the Halton Regional Police Service; it related to, among other conduct, forged bank statements used to support a false claim that Strike held USD 97 million at TD Bank, and a subsequent debenture raise of over CAD 900,000 to fund litigation premised on that claim. Carmichael’s co-accused, Michael Aonso, pleaded guilty in November 2024 to unregistered trading and illegal distribution of securities, and is scheduled to appear for sentencing on September 23, 2025.
Ontario Securities Commission 2025-06-10
Ontario Securities Commission reports four-year jail sentence and CAD 22.7 million restitution order for Strike Holdings fraud
The Ontario Securities Commission announced that Kevin Carmichael has been sentenced to four years in jail for defrauding investors in Strike Holdings Inc., making misleading statements, and trading securities without registration. He was ordered to pay CAD 22.7 million in restitution. The case involved forged bank statements and a debenture raise based on false claims, with investigative support from the Halton Regional Police Service.