Jon Feasby

Following a merits decision finding that the respondents breached the registration requirements of the Securities Act by engaging in unregistered trading of IMAGIN securities, the Ontario Securities Commission held a hearing on sanctions and costs.

The Commission ordered that the individual respondent permanently cease trading in IMAGIN securities, be prohibited from acting as a director or officer of any issuer for 15 years, and be reprimanded.

The Commission declined to impose an administrative penalty, finding the other sanctions sufficient for deterrence.

The respondents were also ordered to pay $57,482.50 in costs, reduced from the requested amount to reflect their partial compliance efforts in paying filing fees.

The Ontario Securities Commission held a hearing to consider whether IMAGIN Diagnostic Centres Inc. and Patrick J. Rooney breached the registration requirements of the Securities Act.

The Commission found that IMAGIN acted as a market intermediary by employing a sales team to actively solicit and sell its securities to investors, raising approximately $14 million.

As a market intermediary, IMAGIN was not entitled to rely on the accredited investor or closely-held issuer exemptions from registration.

The Commission also found that Mr. Rooney, although not formally appointed, was a de facto officer and director who controlled IMAGIN and authorized, permitted, or acquiesced in its unregistered trading.

Both respondents were found to have breached subsection 25(1)(a) of the Act.

The applicant, an investment advisor, sought a stay of an Ontario Securities Commission decision dismissing his application for a hearing and review of an IIROC disciplinary decision.

The IIROC hearing panel had permanently banned the applicant and imposed a fine and costs for having undisclosed financial interests in client accounts.

The Commission considered the RJR MacDonald test for granting a stay pending appeal.

Finding that the Divisional Court was in a better position to determine the merits of the appeal and whether a stay should be granted, the Commission granted a short 60-day extension of the interim stay to allow the applicant to commence an appeal and bring a stay motion before the Divisional Court.

The Ontario Securities Commission held a settlement hearing regarding Shawn Lesperance, the Treasurer and a director of Goldbridge Financial Inc. The respondent acknowledged receiving monies in violation of the Securities Act and an outstanding Commission order.

The Panel approved the settlement agreement, finding it in the public interest.

The respondent was prohibited from trading in securities and acting as a director or officer of any issuer for three years, and ordered to pay $1,000 in investigation costs.