Kate G. Wootton

The appellant appealed a decision of the Ontario Securities Commission that set aside a decision of the IDA District Council and substituted a harsher penalty for his involvement in facilitating a market manipulation scheme.

The Divisional Court dismissed the appeal, finding that the Commission applied the correct standard of review, properly concluded that the District Council misapprehended material evidence, and reasonably substituted its view of the public interest in imposing a severe penalty including a fine and suspension.

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.