James E. A. Turner

The Ontario Securities Commission held a merits hearing regarding allegations that the respondents engaged in unregistered trading, illegal distributions, prohibited representations, and fraud.

Timothy German and his company Ensign purported to sell shares of Bradon Technologies Ltd. to investors, making false representations about an imminent sale of Bradon's technology and offering a buy-back guarantee.

German pooled investor funds to buy Bradon shares at a lower price, keeping the difference.

Joseph Compta, Bradon's founder, facilitated German's share purchases and failed to disclose material facts to investors who contacted him, thereby participating in the fraud.

The Commission found that all respondents breached the Securities Act and acted contrary to the public interest.

Staff of the Ontario Securities Commission sought an inter-jurisdictional enforcement order against the respondent under s. 127(10) of the Securities Act, based on a settlement agreement the respondent entered into with the Alberta Securities Commission.

The respondent had admitted to engaging in a course of conduct relating to securities that resulted in a false and misleading appearance of trading activity and an artificial price.

The Commission found it was in the public interest to protect Ontario investors and capital markets by imposing market conduct restrictions consistent with the Alberta settlement.

The respondent was ordered to cease trading in and acquiring any securities until February 20, 2019.

Staff of the Ontario Securities Commission sought an order imposing market conduct restrictions against the respondent following his criminal conviction for 15 counts of fraud over $5,000.

The respondent had misappropriated approximately $6.6 million from investors while employed as a financial consultant.

The Commission found that the respondent's conduct would have constituted a breach of the Securities Act and that it was in the public interest to protect Ontario investors and capital markets.

The Commission ordered permanent market conduct restrictions, including permanent bans on trading, acquiring securities, and acting as a director or officer of any issuer.

Staff of the Ontario Securities Commission brought an application for inter-jurisdictional enforcement under s. 127(10) of the Securities Act, seeking market conduct restrictions against the respondents based on a settlement agreement they entered into with the Alberta Securities Commission.

The respondents had admitted to illegal distributions and making misleading statements in Alberta.

The Commission proceeded by way of a written hearing, which the respondents did not attend.

The Commission found it was in the public interest to impose market conduct restrictions in Ontario substantially similar to those agreed to in Alberta, including trading bans and director/officer bans.

Staff of the Ontario Securities Commission and Ernst & Young LLP sought approval of a no-contest settlement agreement relating to Ernst & Young's audits of Sino-Forest Corporation and Zungui Haixi Corporation.

The Commission approved the settlement, noting it was the first no-contest settlement in Ontario.

Ernst & Young agreed to make a voluntary payment of $8 million, of which $2.1 million was allocated to costs, and to cooperate with Staff's ongoing investigations.

The Commission found the settlement fair and reasonable, emphasizing the auditor's gatekeeper role and the significant remedial actions taken.

The Applicant sought a hearing and review of a 2007 settlement agreement with Market Regulation Services Inc. (now IIROC) in which he admitted to trading violations and paid a $25,000 fine.

In 2013, an IIROC hearing panel dismissed identical allegations against the Applicant's supervisor, finding the trading did not contravene the rules.

The Commission found it had jurisdiction to review the matter and granted an exemption from the 30-day time limit.

Applying the Canada Malting test, the Commission concluded the subsequent decision constituted new and compelling evidence.

Finding it manifestly unfair to allow the settlement to stand, the Commission set aside the settlement approval, ordered the Applicant's disciplinary record expunged, and directed IIROC to repay the $25,000 fine.

Staff of the Ontario Securities Commission applied for an inter-jurisdictional enforcement order against the respondents under subsection 127(10) of the Securities Act, based on a prior order of the British Columbia Securities Commission (BCSC).

The BCSC had found that the respondents engaged in an illegal distribution of securities and perpetrated a fraud by promising risk-free, high rates of return to investors.

The Commission found that the respondents' conduct would have constituted a breach of Ontario securities law had it occurred in Ontario.

Concluding that it was necessary to protect Ontario investors and the integrity of the capital markets, the Commission granted the application and imposed permanent market conduct restrictions on the respondents, including permanent bans on trading and acquiring securities, and acting as a director or officer of any issuer or registrant.

Staff of the Ontario Securities Commission brought an application for an inter-jurisdictional enforcement order against the respondent under s. 127(10) of the Securities Act.

The respondent was previously sanctioned by the British Columbia Securities Commission for making misrepresentations with the intention of trading in securities.

The Commission found that it was in the public interest to protect Ontario investors and capital markets by imposing market conduct restrictions on the respondent.

The Commission ordered permanent bans on trading, acquiring securities, and acting as a director, officer, registrant, investment fund manager, or promoter.

The applicants, 1832 Asset Management L.P. and Aurion Capital Management Inc., applied for exemptive relief on behalf of several mutual funds to permit the funds to invest in a secondary offering of CI Financial Corp. shares.

The relief was required because The Bank of Nova Scotia, a substantial securityholder of the applicants, held a significant interest in CI Financial Corp., triggering the investment prohibition in National Instrument 81-102.

The Ontario Securities Commission granted the requested relief, subject to conditions including independent review committee approval, maximum investment limits, and pricing requirements.

Following a merits decision finding the respondents engaged in unregistered trading and perpetrated a fraud on investors through an advance-fee scheme, the Ontario Securities Commission held a hearing to determine sanctions and costs.

The respondents solicited U.S. investors to pay advance fees for the purported sale of shares, misappropriating $15,634.

The Commission ordered permanent market bans, a $100,000 administrative penalty, and disgorgement against the corporate respondent and its directing mind.

A 10-year market ban and $25,000 penalty were ordered against the salesperson respondent.

The respondents were also ordered to pay $49,000 in costs.

Staff of the Ontario Securities Commission brought an application for an inter-jurisdictional enforcement order under subsections 127(1) and 127(10) of the Securities Act against the respondents, who were previously sanctioned by the Alberta Securities Commission for perpetrating a Ponzi scheme and defrauding investors of approximately $52 million.

The respondents did not participate in the written hearing.

The Commission found that the respondents' conduct would have constituted a breach of Ontario securities law had it occurred in Ontario.

To protect Ontario investors and capital markets from possible future harm, the Commission exercised its public interest jurisdiction to impose permanent market conduct restrictions on the respondents, substantially identical to those imposed in Alberta.

Staff of the Ontario Securities Commission sought an inter-jurisdictional enforcement order under s. 127(10) of the Securities Act to impose market conduct restrictions on the respondents, mirroring an order made by the Alberta Securities Commission.

The ASC had found that the respondents made materially misleading statements and that one respondent perpetrated a fraud in connection with a life settlement investment scheme.

The Commission rejected arguments that the proposed sanctions violated the Charter or the Canadian Human Rights Act.

Finding it necessary to protect Ontario investors and capital markets, the Commission granted the order and imposed reciprocal market conduct restrictions, including a permanent ban on trading and acquiring securities for the respondent who perpetrated the fraud.

Staff of the Ontario Securities Commission sought sanctions and costs against Z2A Corp. and Christine Hewitt following a merits hearing that found they engaged in unregistered trading and illegal distributions of securities.

The respondents facilitated a charitable gifting program where donors received shares of a company in exchange for cash donations, with the respondents supplying the shares and retaining a significant portion of the funds.

The Commission found the respondents' conduct to be serious and ordered them to cease trading in securities for five years, resign from any director or officer positions, and pay administrative penalties of $15,000 each.

The respondents were also ordered to disgorge $229,453.10 obtained from their non-compliance and pay $50,000 in costs.

The Filer applied for exemptive relief from the mutual fund self-dealing restrictions in the Securities Act to allow its top funds to invest in underlying funds under common management.

The Ontario Securities Commission granted the requested relief, subject to conditions including that the top funds are distributed solely pursuant to prospectus exemptions, the investments are compatible with the top funds' objectives, and appropriate disclosure is provided to investors regarding potential conflicts of interest.

Staff of the Ontario Securities Commission brought allegations against Blackwood & Rose Inc., Steven Zetchus, and Justin Kreller for unregistered trading and securities fraud.

The respondents solicited U.S. residents to send funds purportedly to facilitate the sale of their shares in Gigapix Studios, Inc., but misappropriated the funds for personal use.

The Commission found that the respondents engaged in the business of trading in securities without registration and perpetrated a fraud on investors.

Zetchus, as the sole director and directing mind of Blackwood, was deemed to have also failed to comply with Ontario securities law.

Staff of the Ontario Securities Commission brought a proceeding seeking an inter-jurisdictional enforcement order against the respondent under subsection 127(10) of the Securities Act.

The respondent was previously found by the British Columbia Securities Commission to have perpetrated a fraud and was subject to permanent market conduct restrictions in that province.

The Commission found that the respondent's conduct would have constituted a breach of Ontario securities law had it occurred in Ontario.

To protect Ontario investors and capital markets, the Commission granted the order and imposed permanent market conduct restrictions on the respondent, including permanent bans on trading, acting as a director or officer, and acting as a registrant.

The Filer, 1832 Asset Management L.P., applied to the Ontario Securities Commission for exemptive relief on behalf of existing and future mutual and pooled funds.

The requested relief sought to exempt the funds from related party prohibitions under the Securities Act, permitting them to invest in non-exchange traded debt securities and exchange-traded securities issued by related parties.

The application was prompted by an internal reorganization of the Filer's asset management business, which necessitated the revocation and replacement of previous relief decisions.

The Commission granted the requested relief, subject to extensive conditions regarding pricing, independent review committee approval, and limits on the concentration of purchases.

The applicant, 1832 Asset Management L.P., applied for exemptive relief from the mutual fund conflict of interest reporting requirements under the Securities Act.

Following an internal reorganization, the applicant sought to consolidate and replace existing relief granted to affiliated entities.

The Ontario Securities Commission granted the relief, permitting the applicant to rely on alternative reporting in management reports of fund performance, provided certain disclosure conditions were met.

The applicant, Purpose Investments Inc., applied on behalf of its existing and future exchange-traded funds for exemptive relief from the underwriter's certificate requirement and the prospectus form requirement under the Securities Act.

The Ontario Securities Commission granted the requested relief, subject to conditions including the filing and delivery of a prescribed Summary Document for each class or series of ETF securities.

The relief aligns with the Canadian Securities Administrators Point of Sale Disclosure Initiative and is subject to a sunset clause.

The applicant, a French issuer, applied for exemptive relief from the prospectus and dealer registration requirements under the Securities Act in connection with a global employee share offering.

The offering involved the use of collective employee shareholding vehicles (FCPEs) under French law, which prevented the applicant from relying on standard prospectus and registration exemptions.

The Ontario Securities Commission granted the requested relief, subject to conditions regarding the first trade of the units or shares acquired by Canadian participants.