Ontario Regulator Flags Unregistered Firms, Cites Potential for Investor Fraud

Toronto, ON – November 11, 2025 – The Ontario Securities Commission (OSC) has issued warnings to investors about six companies operating without proper registration, raising concerns about potential fraud and financial harm. The OSC’s Capital Markets Tribunal is actively investigating one firm, Arquette Insurance and Wealth Management, for alleged unregistered trading, advising, and potential co-mingling of client funds. This latest action highlights the ongoing risks posed by unregistered firms and underscores the need for investors to exercise extreme caution and verify the credentials of anyone offering investment services.

A Pattern of Unregistered Activity

The OSC’s warnings cover Arquette Insurance and Wealth Management, PT-Option, ZenithX24, Nord Financial Services Ltd. dba Nexma.pro, MGX Foundation, and Canada Economic Union. While the OSC has yet to detail the specifics of all six cases, the common thread is their lack of registration with the regulatory body. This absence of registration means these firms are not subject to the oversight and investor protection measures established by Ontario’s securities laws.

“Operating without registration is a serious offense,” explains a source familiar with the OSC’s enforcement activities. “It deprives investors of crucial safeguards and exposes them to significant risk. Firms are required to register to ensure they meet certain standards of competence, financial stability, and ethical conduct.”

Arquette Insurance Under Scrutiny
The most concerning case involves Arquette Insurance and Wealth Management. The OSC issued a Temporary Cease Trade Order (TCTO) against Adam Joseph Arquette and his firm on October 28, 2025. The regulator alleges that Arquette and the firm engaged in unregistered trading and advising in securities, potentially managing over 300 client accounts without proper authorization. The OSC investigation has revealed allegations of co-mingling client funds with personal funds and misrepresenting account values. The Capital Markets Tribunal is scheduled to hear a motion to extend the TCTO on November 28, 2025.

“The allegations against Arquette Insurance are deeply troubling,” states an anonymous investor who claims to have had a brief consultation with the firm. “They presented themselves as financial professionals, but now, looking back, there were several red flags. They were overly aggressive with their sales pitch and reluctant to provide detailed information about their fees.”

The OSC is urging anyone who has dealt with Arquette Insurance to come forward and provide information. The regulator is also working to identify and protect potentially affected investors.

MGX Foundation: A Case of Misleading Branding?
The OSC’s warnings also include MGX Foundation, a company that has drawn scrutiny for potential fraudulent activity. The Canadian Securities Administrators (CSA) issued an investor alert warning that MGX Foundation, operating from Cyprus, is not registered in Ontario. Notably, the name closely resembles that of MGX Fund Management Limited, a legitimate Emirati state-owned investment firm.

“This kind of branding tactic is common among fraudulent firms,” explains a source specializing in financial crime. “They deliberately choose names that are similar to those of established, reputable companies to create a false sense of legitimacy.”

The Rise of Unregistered Firms and Online Platforms
The OSC’s warnings come amid a growing trend of unregistered firms operating online and targeting investors through social media and other digital channels. The accessibility of the internet has made it easier for these firms to reach a wider audience and evade detection.

“The internet has created both opportunities and challenges for regulators,” states an anonymous official within the OSC’s enforcement division. “While it has made it easier for investors to access information, it has also made it easier for fraudulent firms to operate and hide their activities.”

Protecting Yourself: Due Diligence is Key
The OSC urges investors to take the following steps to protect themselves from fraud:

• Verify Registration: Always verify that any firm or individual offering investment services is registered with the appropriate regulatory body. You can use the OSC’s online registration database to check their status (https://www.osc.gov.on.ca/en/investors/check-registration).
• Be Wary of Unsolicited Offers: Be cautious of unsolicited investment offers, especially those received through email or social media.
• Do Your Research: Thoroughly research any investment before committing your money. Understand the risks involved and the fees charged.
• Seek Independent Advice: Consider seeking advice from a qualified financial advisor who is independent of the firm offering the investment.
• Report Suspicious Activity: If you suspect fraud, report it to the OSC or your local law enforcement agency.

The OSC’s Ongoing Commitment
The OSC remains committed to protecting Ontario investors and cracking down on fraudulent activity. The regulator is actively pursuing enforcement actions against unregistered firms and individuals and is working to raise investor awareness about the risks of fraud.

“We are determined to hold those who defraud investors accountable for their actions,” states a spokesperson for the OSC. “We encourage investors to be vigilant and to report any suspicious activity.”

The OSC’s warnings serve as a crucial reminder that due diligence and investor awareness are essential in today’s complex financial landscape. By taking the necessary precautions and verifying the credentials of anyone offering investment services, investors can significantly reduce their risk of fraud and protect their financial future.