Ontario securities regulators are seeking millions in potential penalties against Thorndale businessman Robert Freeman, alleging he breached securities rules and deceived investors while selling shares in Qu Biologics Inc., a private B.C. biotech company. Freeman denies any fraud and says he plans to fight the case.

A London-area businessman is facing enforcement proceedings from the Ontario Securities Commission over allegations tied to the sale of shares in Qu Biologics Inc., a privately held biotech company based in British Columbia. According to CBC News, regulators allege Robert Freeman sold roughly $4.8 million worth of shares between 2009 and 2024 to about 190 investors in a manner that breached Ontario securities rules.

The OSC alleges Freeman created the impression that investors could acquire an interest in his shares through trust-style agreements, even though the shares could not legally be sold without approval from Qu Biologics’ board. Regulators also allege that some investors were falsely told Freeman was acting on behalf of other shareholders seeking to sell. In addition, the OSC claims the transactions involved illegal distributions and unregistered trading because the purchasers were not properly qualified under prospectus exemption rules.

Freeman has denied the allegations and told CBC that there was “no fraud” and no intent to mislead anyone. He says investors understood that he would continue to hold the shares in trust on their behalf, and he characterizes the matter as a misunderstanding of securities rules rather than a deliberate scheme. Freeman also said he has retained legal counsel and intends to challenge the case through the tribunal process.

The matter is significant not only because of the amount allegedly raised, but also because of Freeman’s public profile in the London region. He previously founded London Telecom and sold the company in 1999 for $76 million. He later became involved with Qu Biologics as an investor and director after pursuing alternative medical treatment connected to the company’s leadership.

Qu Biologics has distanced itself from Freeman in a statement cited by CBC, saying he has had no active role in the company for more than a decade and that its board did not approve sales of shares to non-accredited investors. The case is proceeding through the Capital Markets Tribunal, which has already made orders barring Freeman from trading securities while the hearing continues.

If the OSC succeeds, Freeman could face substantial fines, repayment orders, permanent market bans, and restrictions on serving as a director or officer. A further case management appearance is scheduled for June, as the matter moves through the early stages of the enforcement process.

The post Ontario securities regulators pursue case against London-area businessman over alleged Qu Biologics share sales appeared first on Canadian Fraud News Inc. | Fraud related news | Fraud in Canada.

Originally published on Canadian Fraud News.