Regulators in Ontario are pursuing hefty fines against a businessman from the London area, claiming he violated securities laws while selling shares in a biotech firm based in B. C.
The Ontario Securities Commission (OSC) has wrapped up its investigation into Robert Freeman, a businessman from Thorndale. The OSC asserts that the 72-year-old “perpetuated a fraud” and misled investors during the sale of shares in Qu Biologics Inc., a company he was involved with founding.
Freeman, known for his success after selling his company, London Telecom, for $76 million back in 1999, stated that he has retained legal counsel and intends to contest these claims.
The OSC’s documents allege that Freeman violated securities regulations by selling $4.8 million worth of his QBI shares to 190 investors between 2009 and 2024, then funneling those funds into accounts belonging to his company, Plover Mills Farms Inc.
According to the OSC filing, Freeman misled investors by using agreements that falsely suggested he could transfer ownership of his shares while also holding them in trust. The commission claims Freeman lacked the necessary approval from QBI’s board to sell his shares legally.
Freeman built this 13,000-square-foot mansion known as Avalon after selling London Telecom in 1999. He is now facing enforcement actions under the Ontario Securities Act. (Andrew Lupton/)
It further alleges that Freeman misleadingly claimed to some investors that he was acting on behalf of other shareholders wanting to sell their own shares.
The OSC application outlines various other violations related to securities regulations.
As per the OSC’s findings, buyers were not adequately qualified for purchasing QBI shares because no prospectus was provided-a detailed financial statement needed for potential investors. Share sales require an exemption from needing a prospectus before potential buyers can be qualified.
“Freeman has never been registered to trade,” states the document. “His sales of QBI shares violated registration rules.” It adds that “Freeman engaged in conduct intended to defraud investors.”
“His sale of QBI shares also involved illegal distributions and unregistered trading.”
The OSC operates as an independent Crown agency overseeing capital markets within Ontario and aims to enforce laws meant to shield investors from unfair or fraudulent practices.
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The entrance of Avalon, Freeman’s mansion north of Thorndale. (Andrew Lupton/)
One doctor who treated him was Hal Gunn based out of Vancouver. Gunn uses immunotherapy techniques aimed at treating disease through restoration of immune function within specific organs according to information on their company’s website.
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An image from Vision Without Eyes’ website offering seminars teaching ‘mind sight.’ (https://www. visionwithouteyes. com/)
Banned from Trading Securities
The OSC has secured orders preventing Freeman from trading securities while this matter unfolds. A preliminary hearing took place on February 9 at the Capital Markets Tribunal-an independent branch of the OSC responsible for conducting hearings and imposing sanctions according to provincial law. Freeman believes there’s been a misunderstanding and insists the OSC misrepresents his actions as fraudulent. “There’s no fraud, there’s no ill intention here,” he said. “I told every investor that I would be holding the shares and it says so in our trust agreement.” Starting London Telecom back in 1988 during times when long-distance calling fees were high before internet use became widespread, Freeman established his own network which increased competition against major companies like Bell. After selling London Telecom for $76 million in 1999, he constructed a sprawling mansion called Avalon along the Thames River north of Thorndale. Shortly afterward, he faced a diagnosis of non-Hodgkin’s lymphoma-a type of cancer affecting lymphatic tissue. “I had a five percent chance to live,” recalled Freeman. The years following his sale were spent traveling globally searching for alternative treatments for cancer.‘Going To Fight This With Every Nickel I Have’
Freeman denies committing fraud while selling QBI shares; asserting instead he’s helping people invest who wouldn’t qualify under existing securities guidelines.
He explained how he used funds from personal bank loans totaling $2 million towards purchasing stocks which were later sold with an agreement stating they’d be held “in trust” until formally transferred.
He stated interest came directly towards himself rather than soliciting any sales making eager parties reach out wanting stake in investments made available.
Regarding why money collected went into Plover Farms accounts instead-he clarified repayment obligations due on aforementioned loan meant this step necessary covering share purchases made earlier.
Not notifying QBI board about sales stemmed solely ignorance regarding such requirement placed upon sellers otherwise unaware moving forward without formalities attached explaining process fully beforehand.”
“I didn’t know that I had to do that if I was just selling them under the trust agreement.”
With legal representation enlisted already present & plans underway actively defending through proceedings laid forth ahead involving hearings conducted by officials examining case itself moving forward effectively down judicial path.”
LISTEN | Listen To Andrew Lupton On London Morning About This Story:
London Morning6:16Local entrepreneur is facing scrutiny over alleged misconduct surrounding transactions executed during active investment periods controlling biotech firm stakes placed within domain held privately exclusively detailing mentioned previously above concerning overall situation ongoing presently reported frequently online platforms utilized across various outlets locally & nationwide keeping interested parties informed regularly updating developments occurring amidst pending resolutions taking shape
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