Significant market prohibitions, disgorgement, and administrative penalties ordered against respondents for serious securities law violations.
Following a merits decision finding that the respondents breached multiple provisions of the Securities Act by making materially untrue or misleading statements in offering memoranda and promotional materials, failing to file offering memoranda, and breaching a temporary cease trade order, the Commission held a hearing to determine sanctions and costs.
The Commission found that the respondents' misconduct was very serious, resulting in approximately $20 million in investor losses.
The Commission ordered that the respondents cease trading in securities and be denied exemptions for 10 years, with a limited carve-out for the individual respondent's RRSP.
The individual respondent was permanently prohibited from acting as a director or officer of any issuer, reprimanded, and ordered to disgorge $420,000 and pay an administrative penalty of $750,000.
The Commission also ordered the individual respondent to pay $251,145.37 in costs.
The Commission declined to impose certain permanent market prohibitions requested by Staff because they were not included in the original Notice of Hearing.
