Ontario Securities Commission: Smart Prime Group Charged with Fraud

• The Ontario Securities Commission (OSC) charged Seyed Mohammad Ali Nojoumi, Behnaz Samavat, and Amir Mostoufi, the alleged operating minds behind Smart Prime Group Inc., with fraud over $5,000 and possession of proceeds of crime.
• These three individuals were charged in connection with the alleged scheme, and their legal proceedings are ongoing.
• FINTRAC's financial intelligence was instrumental in uncovering the alleged fraud.
• The OSC's investigation highlights the importance of proper handling of client funds in the asset management industry.

The OSC's charges against Smart Prime Group send a clear message to firms operating in the asset management industry: compliance with securities regulations is non-negotiable.

A recent Ontario Securities Commission (OSC) investigation has led to the charging of Seyed Mohammad Ali Nojoumi, Behnaz Samavat, and Amir Mostoufi, who are believed to be the operating minds behind Smart Prime Group Inc., with fraud. The group, which claimed to be in the asset management business, promised investors that their funds would be placed in individual trading accounts. However, an examination of FINTRAC's financial intelligence revealed that the funds were instead routed to personal and unrelated third-party accounts. This mismanagement of client funds has resulted in these three individuals facing charges for fraud over $5,000 and possession of proceeds of crime. Mostoufi and Samavat were scheduled to appear in court in January 2026, and Nojoumi was arrested and charged in December 2025, with his bail hearing pending.

The OSC's investigation highlights the importance of proper handling of client funds in the asset management industry. Securities regulations require that firms maintain accurate records of transactions and ensure that client funds are segregated from company assets. The OSC's increased scrutiny of firms operating in this space serves as a reminder to lawyers advising clients on asset management to prioritize compliance with securities regulations. FINTRAC's financial intelligence played a crucial role in uncovering the alleged fraud, demonstrating the value of collaboration between regulatory bodies in protecting investors.

The OSC's charges against the individuals behind Smart Prime Group send a clear message to firms operating in the asset management industry: compliance with securities regulations is non-negotiable. Lawyers advising clients on asset management should take note of the OSC's increased scrutiny and ensure that their clients are taking steps to prevent similar allegations of fraud. By prioritizing transparency and accountability, firms can maintain the trust of investors and avoid costly regulatory consequences.

Lawyers advising clients on asset management should be aware of the OSC's increased scrutiny and take steps to ensure compliance with securities regulations, including proper handling of client funds.

Source: Original reporting via News release