Suresh Thakrar

The Ontario Securities Commission approved a settlement agreement with the respondent.

The respondent acknowledged engaging in insider trading contrary to s. 76(1) of the Securities Act, failing to file required insider reports under s. 107, and failing to correct a Management Information Circular that incorrectly stated his share ownership.

The Commission found the sanctions, which included a reprimand, fairly reflected the gravity of the conduct and approved the settlement as being in the public interest.

Staff of the Ontario Securities Commission brought a settlement hearing regarding Wells Fargo Financial Canada Corporation's failure to file prospectus supplements on time on four occasions.

The Commission approved the settlement agreement, noting that inadvertence and reliance on outside counsel were not valid excuses for late filings.

The Commission imposed an administrative penalty of $20,000, emphasizing that this novel use of an administrative penalty serves as a specific deterrent to the respondent and a general warning to market participants about the importance of timely filings.

Staff of the Ontario Securities Commission brought a motion for an order authorizing the disclosure of certain documents for a hearing on the merits.

The receiver of Philip Services Corp. claimed solicitor-client privilege over the documents.

The Commission found that privilege over the documents was waived when they were disclosed to the company's auditors, who were acting as third parties rather than agents for the purpose of obtaining legal advice.

The Commission also found that the company failed to take reasonable steps to protect the privilege and had put the legal opinions in issue.

The motion was granted, and the documents were ordered to be disclosed.

The Ontario Securities Commission approved a settlement agreement concerning the respondents' involvement in an 'overtrade' of Bioscrypt Inc. shares.

Paradigm Capital Inc., acting as an agent for a private placement, facilitated secondary market trades for a mutual fund manager who had been solicited for the private placement.

This resulted in shares being sold by persons with knowledge of an undisclosed material fact to persons without such knowledge.

The Commission found this conduct contrary to the public interest, reprimanded the respondents, imposed trading restrictions, and ordered settlement payments and costs.

Following a finding that the respondents traded in securities without registration in relation to a high-yield investment program, the Ontario Securities Commission held a sanctions hearing.

The Commission ordered that the corporate respondents cease trading for 15 years, and the individual respondent cease trading for 10 years with carve-outs for personal accounts.

The individual respondent was also banned from acting as a director or officer of an issuer for 15 years, reprimanded, and ordered to pay $150,000 in costs.

Following his criminal conviction for insider trading, the Ontario Securities Commission held a hearing to determine whether to impose public interest sanctions against the respondent under s. 127 of the Securities Act.

The respondent, while an officer and director of a reporting issuer, had sold shares with knowledge of undisclosed material negative assay results, avoiding significant losses.

The Commission found his conduct egregious and a breach of fiduciary duty.

To protect the capital markets, the Commission ordered a 15-year cease trade order and a 15-year ban on acting as a director or officer of any reporting issuer, with limited carve-outs for personal trading.

The Ontario Securities Commission held a hearing to determine whether the respondents breached section 25(1)(a) of the Securities Act by trading in securities without being registered.

The respondents had accepted approximately US $21 million from investors for a "high yield program" involving bank guarantees and medium-term bank notes.

The Commission found that the high yield program constituted an investment contract and therefore a security under the Act.

The Commission further held that the respondents' actions, including accepting funds and providing proof of funds letters, constituted acts in furtherance of trades.

As the respondents were acting as market intermediaries in Ontario, they were not exempt from registration.

The Commission concluded that the respondents traded in securities without registration contrary to the Act, with a subsequent hearing to determine sanctions.

The Ontario Securities Commission held a hearing to consider a settlement agreement between Staff and the respondent regarding allegations of illegal insider trading.

The respondent admitted to receiving undisclosed material information from a close friend who was a managing director at a securities firm, and using that information to trade in the securities of two reporting issuers, realizing a profit of approximately $1.9 million.

The Commission approved the settlement agreement as being in the public interest, noting the respondent's cooperation with Staff, his agreement to a permanent cease trade order and director/officer ban, a voluntary payment of $1.9 million, and $25,000 in costs.

The applicant, a group retirement plan administrator registered as a mutual fund dealer and portfolio manager, sought an exemption from the requirement to become a member of the Mutual Funds Dealers Association (MFDA).

The applicant argued its business model, which included discretionary trading, was incompatible with MFDA rules and that restructuring would be costly and confusing to clients.

The Commission denied the exemption, emphasizing that investor protection and the benefits of MFDA oversight outweighed the administrative and financial burdens of restructuring.

A temporary exemption was granted to allow the applicant time to apply for MFDA membership.

The Staff of the Investment Dealers Association of Canada applied for a hearing and review of a District Council decision regarding a registered representative who traded for a client attempting to manipulate the market price of a security.

The District Council had dismissed the allegation that the respondent facilitated the business of an unregistered entity and imposed a penalty without a fine or disgorgement.

The Ontario Securities Commission found that the District Council misapprehended the evidence of facilitation and the public interest in strong sanctions for willful market manipulation.

The Commission set aside the dismissal, imposed a fine of $128,504.55 (including disgorgement of commissions), and suspended the respondent's approval for seven years.