The Ontario Securities Commission (OSC) has announced that Stephan Katmarian, former executive director, managing director, and board chair of Peblik Inc., has been sentenced to six months in jail for securities fraud under section 126.1 of the Securities Act. Katmarian, a resident of Mississauga, Ontario, will also serve 18 months of probation following his release.
Fraudulent Investment Scheme
Peblik Inc. sold investors notes that were convertible into a cryptocurrency called the "Peblik Token," which was never actually launched. The notes were promoted with the false claim that the Peblik Token—and therefore the value of the investments—was backed by a real-world asset, the Thierry Mine, a large, inactive mine in Northern Ontario. In reality, Peblik had no valid interest in the mine. Katmarian was aware of and responsible for this misrepresentation in some Peblik materials.
Investor Losses and Legal Proceedings
Between January 1, 2018, and August 8, 2019, Peblik raised approximately $480,000 from 32 investors, all of whom lost their entire investments. Katmarian knew that his misrepresentations about Peblik's interest in the Thierry Mine could put investors' financial interests at risk.
In March 2024, the Ontario Court of Justice acquitted Katmarian of all charges. The OSC appealed three of the four acquittals. On June 20, 2025, the Ontario Superior Court of Justice partially allowed the appeal, substituting a conviction for securities fraud. Two unrelated grounds of appeal were dismissed. On May 11, 2026, Katmarian was sentenced to six months in prison and 18 months of probation.
OSC Statement
"This decision is a strong reminder that making false claims about the financial backing of assets is fraud. It harms investors, damages confidence in Ontario's capital markets, and has serious consequences," said Bonnie Lysyk, Executive Vice President, Enforcement, OSC. "The OSC will continue to take action as we work hard to curb fraud and hold those responsible to account for their actions."
Appeal Underway
Katmarian is appealing his conviction at the Court of Appeal.
The charges stem from an investigation by the OSC's Criminal Investigations & Prosecutions team, part of the Enforcement Division of the OSC. The team investigates securities-related fraud, market manipulation, and related misconduct, including repeat offenders and those who breach Capital Markets Tribunal orders. Their primary objectives are to protect investors and enhance confidence in Canadian capital markets through effective enforcement. Charges under the Securities Act are prosecuted by the OSC; Criminal Code charges are prosecuted by the Ministry of the Attorney General.
