The Ontario Securities Commission (OSC) announced fraud allegations against SponsorsOne Brands Inc. (SPO), Gary Bartholomew and Myles Bartholomew, alleging they misused the consultant exemption from the prospectus requirement to illegally distribute SPO shares and commit securities fraud. The OSC also alleges WestCan Energy Ltd. and its principal John Cameron Cunningham participated in the illegal distribution. The allegations relate to SPO’s issuance in 2020 and 2021 of approximately 1.2 billion treasury shares to five entities described as marketing consultants, purportedly for marketing services. The OSC alleges little to no meaningful marketing work was performed and that the purported consultants instead sold the shares on the open market and directed approximately CAD 24 million to or for the benefit of SPO and the Bartholomews. On this basis, the OSC alleges the consultants acted as de facto underwriters, improperly distributing shares to the public. A case management hearing is scheduled before the Capital Markets Tribunal for May 7, 2026 at 10:00 am EST.
Ontario Securities Commission 2026-03-27
Ontario Securities Commission alleges SponsorsOne Brands misused the consultant exemption to illegally distribute 1.2 billion shares and commit fraud
The Ontario Securities Commission announced fraud and illegal distribution allegations against SponsorsOne Brands Inc., Gary and Myles Bartholomew, WestCan Energy Ltd. and its principal John Cameron Cunningham. The OSC alleges that approximately 1.2 billion SPO treasury shares were issued in 2020–2021 under the consultant exemption to five purported marketing consultants who performed little to no marketing, sold the shares on the open market, and directed about CAD 24 million to or for the benefit of SPO and the Bartholomews.