Edward P. Kerwin

Following a remittal from the Divisional Court, the Ontario Securities Commission held a fresh hearing to determine the appropriate sanctions for Kevin Loman, who was previously found to have engaged in unregistered trading and illegal distribution of securities.

The Commission considered Loman's role as a salesperson, his prior registration experience, and the harm caused to investors.

The Commission ordered 8-year market prohibitions, including bans on trading, acquiring securities, and acting as a director or officer, subject to a limited carve-out.

Loman was also ordered to pay a $60,000 administrative penalty.

Following a merits decision finding that the respondents committed securities fraud by selling securities of First Leaside Group entities without disclosing a critical Grant Thornton Report, the Ontario Securities Commission held a sanctions hearing.

The Commission ordered permanent market prohibitions against both respondents, with limited carve-outs for personal trading after payment of financial sanctions.

Phillips, the directing mind, was ordered to pay a $700,000 administrative penalty and disgorge $16,597,254.

Wilson was ordered to pay a $400,000 administrative penalty and disgorge $7,817,739 on a joint and several basis with Phillips.

The respondents were also ordered to pay $340,867.50 in costs.

During the 117th day of a protracted hearing on the merits, four respondents brought a motion requesting permission to file written witness statements in lieu of oral examinations-in-chief for their remaining witnesses.

The respondents argued this was necessary to ensure the hearing concluded by the scheduled deadline and to prevent the exhaustion of their funding, relying on the Supreme Court's direction in Hryniak regarding proportionality and access to justice.

Staff opposed the motion, arguing that credibility was at issue and written statements would provide a 'varnished version' of the facts.

The Panel granted the motion, finding that the slight prejudice to Staff in not observing the witnesses during examination-in-chief was outweighed by the necessity to complete the hearing efficiently and the significant costs already incurred by all parties.

Following a merits decision finding multiple respondents liable for insider trading, tipping, and misleading Staff, the Ontario Securities Commission held a hearing to determine appropriate sanctions and costs.

The Commission ordered permanent market prohibitions against the tipper and the most egregious trader, along with substantial administrative penalties and costs.

Other respondents received 15-year market prohibitions with limited carve-outs, administrative penalties, and disgorgement orders.

The Commission emphasized the importance of general and specific deterrence, particularly given the respondents' roles as registrants and their efforts to conceal their misconduct.

Following a merits hearing where the respondents were found to have engaged in unregistered trading, illegal distribution of securities, and fraud in relation to a Forex trading scheme, the Commission held a sanctions and costs hearing.

The Commission ordered permanent market participation bans against the respondents, administrative penalties of $250,000 against Dookhie and $150,000 against Todorov, and disgorgement of $1,046,682 representing the net funds obtained from investors.

The respondents were also ordered to pay costs totaling $267,390.50.

The respondents brought a motion to stay the release of the Commission's decision on the merits of their case, pending the final determination of a civil action commenced by investors against the Commission.

The respondents argued that the civil action created a reasonable apprehension of bias, as the Commission might attempt to deflect blame onto the respondents to protect its own interests.

The Commission dismissed the motion, finding that the respondents failed to establish a reasonable apprehension of bias given the strong presumption of impartiality and the institutional safeguards in place.

The Commission further held that the interests of justice and the public interest in the timely and efficient enforcement of securities laws favoured the release of the merits decision.

Following a merits hearing where the respondents were found to have engaged in unregistered trading and illegal distribution of securities, the Commission held a hearing to determine sanctions and costs.

The respondents, who acted as salespersons for a real estate limited partnership, raised over $5 million from investors over several years.

The Commission considered the seriousness of the breaches, the respondents' experience, and the need for specific and general deterrence.

The Commission ordered market bans of five years for one respondent and three years for the other, along with administrative penalties, disgorgement of commissions earned, and joint and several liability for hearing costs.

Following a merits hearing where the respondents were found to have engaged in unregistered trading, illegal distributions, and fraud in connection with a forex trading Ponzi scheme, the Ontario Securities Commission held a hearing to determine sanctions and costs.

The Commission ordered permanent market and director/officer bans, significant administrative penalties, and disgorgement against the principal architects of the fraud.

For respondents who acted as referrers and were not found to have engaged in fraud, the Commission ordered five-year market and director/officer bans, administrative penalties, and disgorgement of commissions received.

Costs were apportioned among the respondents based on their level of participation and cooperation.

Staff of the Ontario Securities Commission alleged that the respondents engaged in unregistered trading, illegal distribution of securities, and fraud in relation to a Forex trading scheme.

The respondents raised over $1.2 million from investors by issuing promissory notes, promising high returns and falsely claiming that half of the funds would be secured in GICs.

The Commission found that the promissory notes were investment contracts and therefore securities.

The respondents traded and distributed these securities without registration or a prospectus, and no exemptions applied.

Furthermore, the respondents committed fraud by making false representations to investors and misappropriating funds to pay off prior debts and third parties.

The individual respondents, as directors and officers, were deemed liable for the corporate respondent's breaches.

Staff of the Ontario Securities Commission alleged that the respondents engaged in unregistered trading and illegal distribution of securities in relation to limited partnership units for real estate development in Saskatchewan.

The Commission found that the limited partnership units were securities (investment contracts) and that the respondents, acting as market intermediaries, traded and distributed these securities without being registered and without filing a prospectus, in breach of sections 25(1) and 53(1) of the Securities Act.

Following a merits hearing where the respondents were found to have engaged in a fraudulent boiler room scheme that raised approximately $18 million from investors, the Ontario Securities Commission held a sanctions and costs hearing.

The Commission ordered permanent market participation bans against the individual respondents.

It also ordered disgorgement of approximately $16.7 million, representing the amounts obtained by the respondents as a result of their non-compliance with Ontario securities law.

Administrative penalties totaling over $5.6 million were imposed to provide specific and general deterrence.

Finally, the Commission ordered the respondents to pay $344,500 towards the costs of the investigation and hearing.

The Ontario Securities Commission held a written hearing to consider whether to impose sanctions against the respondent under subsections 127(1) and 127(10) of the Securities Act.

The respondent had previously pleaded guilty and been convicted of three counts of fraud over $5,000 under the Criminal Code for operating an unregistered securities firm and defrauding investors of over $1.1 million.

Relying on the criminal convictions and the sentencing judge's findings, the Commission found it was in the public interest to impose permanent market bans against the respondent to protect investors and the integrity of the capital markets.

The Ontario Securities Commission held a sanctions and costs hearing following a merits decision that found the respondents engaged in unregistered trading, illegal distribution of securities, and fraud through a boiler room operation.

The respondents raised approximately $1.2 million from 57 investors, misappropriating a significant portion for personal use.

The Commission ordered permanent market bans against the respondents, including permanent director and officer bans for the individual respondent.

The respondents were also ordered to pay an administrative penalty of $400,000, disgorge $1,231,800 on a joint and several basis, and pay $280,721.02 in costs.

Enforcement Staff of the Ontario Securities Commission brought a motion to admit into evidence selected excerpts from transcripts of compelled examinations of the respondents conducted pursuant to section 13 of the Securities Act.

The respondents opposed the motion, arguing that the admission of compelled testimony violated the Securities Act, the Evidence Act, the Charter, and principles of procedural fairness.

One respondent also brought a cross-motion seeking a confidentiality order for the motion materials.

The Commission held that compelled testimony is admissible in regulatory proceedings and is not precluded by the Charter or the Evidence Act.

However, to ensure fairness and obtain the best evidence, the Commission directed that Staff may only tender the transcripts at the conclusion of its case for those respondents who do not undertake to testify, with a limited exception for proving allegations of misleading statements.

The Commission also granted the cross-motion, ordering the motion materials to remain confidential while releasing the decision publicly.

Following a merits decision finding that the respondents engaged in unregistered trading, illegal distribution of securities, and made prohibited representations, the Ontario Securities Commission held a hearing to determine sanctions and costs.

The Commission ordered permanent and long-term trading, acquisition, and exemption bans against the corporate and individual respondents, along with director and officer bans.

The Commission also ordered administrative penalties totaling $935,000, disgorgement of over $2.5 million, and costs of $305,000, finding that the respondents' conduct was serious, deceitful, and caused substantial harm to investors.

The Ontario Securities Commission held a hearing on the merits regarding allegations that Moncasa Capital Corporation and its directing mind, John Frederick Collins, engaged in unregistered trading, illegal distribution, and securities fraud.

The respondents raised approximately $1.2 million from 57 investors by falsely claiming the funds would be used to purchase luxury Caribbean real estate.

In reality, the respondents operated a boiler room, misappropriated investor funds for personal use, and made numerous misrepresentations.

The Commission found that the respondents breached the registration and prospectus requirements of the Securities Act and engaged in fraud.

Collins was also found to have made false statements to Commission staff and was deemed liable for Moncasa's breaches as its sole director and officer.

The applicant sought a hearing and review of a Director's decision refusing her application for registration as a dealing representative of a mutual fund dealer.

The Director had found that the applicant lacked the requisite integrity because she failed to disclose her prior employment with a 'boiler room' operation in her registration application and misled Staff during a voluntary interview.

The Commission conducted a hearing de novo and found that the applicant failed to provide complete disclosure of her employment history even when given an opportunity to correct her application.

The Commission concluded that the applicant lacked the requisite integrity for registration and dismissed the application.

Following a merits decision finding the respondents engaged in unregistered trading, advising, illegal distribution, and fraud through a 'Debt Elimination Strategy' program, the Ontario Securities Commission held a sanctions and costs hearing.

The respondents did not attend.

The Commission ordered permanent market bans against the respondents, a $300,000 administrative penalty, disgorgement of $859,555, and costs of $235,502.15, finding their conduct caused significant harm to investors and warranted strong specific and general deterrence.

The respondent, a directing mind of a mutual fund manager, pled guilty to criminal fraud and admitted to contravening Ontario securities law by misappropriating investor funds and authorizing payments to himself.

Following an agreed statement of facts, a sanctions hearing was held.

The Commission ordered permanent trading and registration bans, a reprimand, and disgorgement of $320,000, rejecting the respondent's argument that he lacked the ability to pay.

Staff of the Ontario Securities Commission sought to extend a temporary cease trade order against the respondent.

The respondent opposed the extension, arguing that the allegations justifying the temporary order were not included in the recently filed Statement of Allegations.

The Commission found sufficient evidence of potentially harmful conduct to justify an extension, but declined to extend it indefinitely.

The temporary order was extended for a finite period to allow Staff an opportunity to amend the Statement of Allegations to include the conduct that gave rise to the temporary order.