Mary Anne De Monte-Whelan

The respondent Alli brought a motion for a stay of proceedings, alleging that Staff's former outside counsel was in a conflict of interest and had concocted a fraud allegation to bully him into a settlement.

Staff brought a motion to dismiss Alli's motion on a preliminary basis.

The Capital Markets Tribunal granted Staff's motion and dismissed the request for a stay, finding that Alli had significantly delayed bringing the motion without reasonable explanation, the issues raised were irrelevant to the proceeding, and he failed to meet the high bar for a stay.

The Tribunal also dismissed Alli's request for declaratory relief and granted Staff's request to strike portions of Alli's affidavit and closing submissions that improperly disclosed privileged and irrelevant information.

The respondent, a mutual fund dealing representative, managed the investments of an elderly, vulnerable client who was diagnosed with terminal cancer.

Shortly before her death, the client executed a will and powers of attorney naming the respondent as her power of attorney for property and personal care, alternate executor, and sole beneficiary of her estate.

The respondent failed to report these appointments and the testamentary gift to his dealer firm, contrary to MFDA Rules and the firm's policies and procedures regarding conflicts of interest.

The Capital Markets Tribunal found that the respondent breached MFDA Rules and his firm's policies, and that his failure to address these conflicts of interest constituted a breach of his statutory obligation under OSC Rule 31-505 to deal with his client fairly, honestly, and in good faith.

The respondent Silvio Serrano brought a motion and application seeking disclosure of a Confidential Order and related reasons that authorized redactions to transcripts of a co-respondent's compelled interview.

Prior to the hearing on the merits, the term of the Commissioner who had presided over preliminary procedural matters expired, and a new panel was assigned.

Serrano brought a motion challenging the new panel's jurisdiction, arguing the original Commissioner's term should be extended under s. 4.3 of the SPPA or the matter heard de novo.

The Commission dismissed the panel composition motion, finding the original Commissioner only made procedural rulings and did not participate in the merits, so s. 4.3 did not apply and procedural fairness was not breached.

On the disclosure motion, the Commission ordered that the respondents be provided with redacted versions of the Confidential Order and Reasons, as well as information regarding the legal basis for the redactions, balancing the need for procedural fairness with the interests protected by the confidentiality.

Staff of the Ontario Securities Commission alleged that the respondents operated an interconnected business operation to promote, sell, and process binary options transactions from headquarters in Israel to Ontario residents.

The Commission found that the respondents engaged in the business of trading securities without registration and distributed securities without a prospectus, contrary to sections 25(1) and 53(1) of the Securities Act.

The Commission also found that one respondent engaged in deceptive practices, including using aliases and concealing the true location of operations, which was contrary to the public interest.

Following a merits decision finding that the respondents breached a cease trade order by issuing approximately US$7.4 million in convertible debentures, the Commission held a sanctions and costs hearing.

The Commission ordered permanent market bans against the individual respondents, finding their conduct egregious and demonstrating a serious risk to the public.

The Commission ordered disgorgement of the funds obtained from new debentures, but excluded the value of rolled debentures as no new funds were obtained.

Administrative penalties totaling $600,000 and costs totaling $100,000 were also ordered against the individual respondents.

Staff of the Ontario Securities Commission and the respondent audit firm jointly submitted a settlement agreement for approval regarding the respondent's audits of two investment funds.

The respondent admitted to failing to conduct its audits in accordance with generally accepted auditing standards, including failing to obtain sufficient audit evidence, lacking professional skepticism, and failing to complete required engagement quality control reviews.

The Commission approved the settlement, finding it in the public interest, and ordered the respondent to be reprimanded, pay an administrative penalty of $3.5 million, and pay costs of $500,000.

Staff of the Ontario Securities Commission alleged that MOAG Copper Gold Resources Inc. and its directors, Gary Brown and Bradley Jones, violated a temporary cease trade order by issuing and selling approximately US$7.4 million in convertible debentures to Taiwan residents.

The Commission found that the issuance of both new debentures for cash and rolled debentures in exchange for forbearance of repayment constituted trades in securities.

The Commission further found that Brown and Jones engaged in acts in furtherance of these trades, thereby contravening Ontario securities law.