A lawyer representing Ontario's securities regulator says three former executives whose cannabis company was caught growing cannabis 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 that by not disclosing the unlicensed growing at CannTrust Holdings Inc., Peter Aceto, Eric Paul, and Mark Litwin caused "incredible" damage. "The impact on investors alone was "significant, to put it mildly."
"Ultimately, investors rely on the representations that CannTrust made, and unfortunately, it was to their detriment," said Emami in his opening statements made at the Ontario court of justice's Old City Hall court.
The argument was leveled against Aceto, Paul, and Litwin, who have pleaded not guilty to a series of securities offenses linked to the unlicensed growing at a Niagara, Ont. region facility, including fraud and authorizing, permitting, or acquiescing in the commission of an offense.
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