Lawrence Haber

Staff of the Ontario Securities Commission and the respondent jointly submitted a settlement agreement for approval following the respondent's guilty plea to unregistered trading in the Ontario Court of Justice.

The respondent had formed a purported hedge fund and engaged in trading without registration, though he believed the business was legitimate and was himself deceived by a co-founder who lost the investors' funds.

The Commission approved the settlement, which included a $60,000 disgorgement order and a 10-year ban on trading and acting as a director or officer, finding the terms fell within a reasonable range and served the public interest.

Staff of the Ontario Securities Commission and the respondents sought approval of a settlement agreement concerning allegations of unregistered trading.

The respondents admitted that Moskowitz Capital Management Inc. distributed preferred shares in mortgage investment entities without being registered as a dealer, contrary to s. 25(1) of the Securities Act.

The Commission approved the settlement, noting the respondents' substantial cooperation, self-reporting, and remedial steps.

The settlement included a $350,000 administrative penalty, $25,000 in costs, and an undertaking to retain an exempt market dealer to complete a know-your-client and suitability review.

The Ontario Securities Commission approved a settlement agreement between Staff and The Toronto-Dominion Bank regarding allegations of supervisory inadequacies in TD's foreign exchange trading business from 2011 to 2013.

Staff alleged that TD failed to promote a culture of compliance, allowing traders to inappropriately share confidential customer information with competitors.

TD acknowledged the conduct and agreed to a voluntary payment of $9,300,900 and $800,000 in costs.

The Commission found the settlement to be in the public interest, noting TD's significant remediation efforts and exemplary cooperation.

The Ontario Securities Commission approved a settlement agreement between Staff and Royal Bank of Canada (RBC) regarding allegations of supervisory inadequacies in RBC's foreign exchange (FX) trading business from 2011 to 2013.

Staff alleged that RBC failed to promote a culture of compliance, allowing FX traders to inappropriately share confidential customer information with competitors in electronic chat rooms.

RBC acknowledged the conduct was contrary to the public interest, engaged in significant remediation efforts, and agreed to make a voluntary payment of $13,552,000 and pay $800,000 in costs.

The Commission found the settlement to be in the public interest.

Brian Sutton, former CFO of First Leaside Securities Inc., applied for a review of an IIROC panel decision finding he breached Dealer Member Rule 38.6(c) regarding the pricing of unlisted fund units.

IIROC Staff cross-applied for a review of the sanctions.

The Ontario Securities Commission found the IIROC panel made cumulative evidentiary errors, warranting a hearing de novo.

Conducting its own analysis, the Commission concluded Sutton's reliance on an illusory 'active market' to price units at $1.00 was unreasonable and breached his obligations.

The Commission set aside the IIROC sanctions and imposed a $50,000 fine, a three-year prohibition on approval as a CFO, a reprimand, and $50,000 in costs.