Emily Cole

During the 117th day of a protracted hearing on the merits, four respondents brought a motion requesting permission to file written witness statements in lieu of oral examinations-in-chief for their remaining witnesses.

The respondents argued this was necessary to ensure the hearing concluded by the scheduled deadline and to prevent the exhaustion of their funding, relying on the Supreme Court's direction in Hryniak regarding proportionality and access to justice.

Staff opposed the motion, arguing that credibility was at issue and written statements would provide a 'varnished version' of the facts.

The Panel granted the motion, finding that the slight prejudice to Staff in not observing the witnesses during examination-in-chief was outweighed by the necessity to complete the hearing efficiently and the significant costs already incurred by all parties.

The Ontario Securities Commission held a hearing to consider a settlement agreement between Staff and the respondents, Ernest Anderson and Golden Gate Funds LP.

The respondents admitted to engaging in unregistered trading and illegal distribution of securities, raising over $8 million from investors without a prospectus or registration.

The Commission approved the settlement, ordering permanent market bans, an administrative penalty of $126,795, disgorgement of $4,644,258.10, and $20,000 in costs.

Staff of the Ontario Securities Commission brought a proceeding under subsections 127(1) and 127(10) of the Securities Act seeking reciprocal orders against the respondents based on orders made by the Alberta Securities Commission and other provincial regulators.

The Commission found it in the public interest to grant the requested orders.

Petroleum Unlimited LLC and Roger A. Kimmel Jr. were ordered to cease trading in securities and were denied exemptions under Ontario securities law for a period of seven years.

Global Petroleum Strategies LLC was permanently ordered to cease trading and permanently denied exemptions.

Staff of the Investment Dealers Association of Canada (IDA) applied for a hearing and review of an IDA Hearing Panel's penalty decision regarding two registered representatives who facilitated manipulative trading.

IDA Staff argued the Hearing Panel erred in principle by imposing a two-month suspension, $25,000 fines, and $40,000 in costs, which was less than the requested sanctions.

The Ontario Securities Commission dismissed the application, finding that the Hearing Panel considered the appropriate factors, including the respondents' ability to pay, their legal costs, and their subsequent compliance, and did not proceed on any incorrect principle.

The respondents brought a motion challenging the standing of the Investment Dealers Association (IDA) or its staff to apply for a hearing and review of an IDA disciplinary hearing panel decision under section 21.7 of the Securities Act.

The Commission dismissed the motion, finding that the IDA is a 'person directly affected' by the decision of its independent hearing panel and therefore has standing to seek a review.

The Commission held that this interpretation is consistent with the IDA's regulatory mandate and the purposive interpretation of the Act.

The respondents brought a motion for particulars regarding allegations of illegal trading and distributions under the Securities Act.

They argued that the Statement of Allegations and the voluminous disclosure provided by Staff were insufficient to allow them to know the case to meet.

The Commission held that while Staff is not required to meet the strict standard of a criminal proceeding, the duty of procedural fairness requires sufficient particularization of the material facts.

The Commission directed Staff to provide additional specific particulars regarding the alleged illegal distributions, solicitation meetings, and representations, but dismissed the motion to enforce an alleged undertaking by Staff.