Alan Lenczner

Staff of the Ontario Securities Commission sought a reciprocal order under s. 127(10) of the Securities Act based on an Alberta Securities Commission decision.

The ASC found that the respondents engaged in unregistered trading, illegal distribution, and fraud, raising over $5.8 million from investors and misappropriating a significant portion for personal use.

The Commission found it in the public interest to issue reciprocal orders permanently banning the respondents from participating in Ontario's capital markets to protect investors.

Enforcement Staff of the Ontario Securities Commission applied for an order authorizing the disclosure of investor lists, promissory notes, banking records, and payment instruments to the Ministry of the Attorney General's Civil Remedies for Illicit Activities Office (CRIA).

The respondents had previously settled fraud allegations and agreed to disgorge funds, of which over $930,000 had been collected.

The Commission found it was in the public interest to authorize the disclosure without notice under s. 17(2.1) of the Securities Act, as the records were necessary for CRIA to run a claims process and distribute the recovered funds to the defrauded investors.

Following a merits decision finding that the respondents engaged in unregistered trading, illegal distributions, and fraud, the Ontario Securities Commission held a hearing to determine sanctions and costs.

The Commission ordered permanent market bans against the corporate respondent and the two individual respondents.

The individual respondents were also ordered to pay administrative penalties of $200,000 and $150,000, disgorge amounts obtained as a result of their non-compliance totaling over $5.1 million, and pay costs of $125,000.

The Commission declined to order joint and several liability for the disgorgement amounts.

The CIBC Dealers self-reported inadequacies in their systems of controls and supervision that resulted in certain clients paying excess fees.

Staff of the Ontario Securities Commission and the CIBC Dealers entered into a Settlement Agreement.

The Commission approved the Settlement Agreement, noting the CIBC Dealers' prompt self-reporting, cooperation, implementation of a compensation plan estimated at $73.2 million for affected clients, and voluntary payments of $3 million to the Commission and $50,000 for costs.

Staff of the Ontario Securities Commission alleged that the respondents contravened Ontario securities law by engaging in unregistered trading, conducting illegal distributions, making prohibited representations about listing on an exchange, and perpetrating fraud on investors.

The Commission found that Blue Gold Holdings Ltd., Raj Kurichh, and Nigel Greening engaged in the business of trading without registration.

BGH and Kurichh were found to have engaged in illegal distributions and made prohibited representations regarding listing.

Furthermore, BGH and Kurichh were found to have perpetrated fraud by misrepresenting the company's sales pipeline and government approvals, diverting investor funds for personal use, and fraudulently diluting the interests of retail shareholders.

Kurichh and Greening were deemed liable for BGH's breaches as directors and officers who authorized, permitted, or acquiesced in the non-compliance.

A sanctions hearing was ordered.

The Ontario Securities Commission held a sanctions and costs hearing following a merits decision finding that the respondents engaged in unregistered trading and fraudulent conduct.

Gillani and the Corporate Respondents, who orchestrated a sophisticated scheme that defrauded investors, were ordered to pay a $1 million administrative penalty, disgorge $719,000, pay $200,000 in costs, and were permanently banned from the capital markets.

Driscoll, who acted in furtherance of trades by recruiting investors but was not involved in the fraud, was ordered to disgorge $66,000 in commissions, pay a $30,000 administrative penalty and $15,000 in costs, and received a conditional two-year market ban.

The applicants, claiming to be victims of a Ponzi scheme, sought a disclosure order under section 17 of the Securities Act to obtain transcripts and materials from a Commission investigation.

They sought these materials to assist in a civil action against their former lawyers, alleging breach of fiduciary and professional duties during the investigation.

The Commission found that, unlike typical cases where disclosure is sought against the subjects of an investigation, the applicants sought disclosure against their own lawyers regarding their conduct before the Commission.

Finding no appreciable confidentiality interest remaining and no risk to the concluded investigation, the Commission held it was in the public interest to authorize disclosure of the section 13 transcripts and related communications.