Jeffrey Kehoe

The Ontario Securities Commission approved a settlement agreement with Mark Edward Valentine, former chair of Thompson Kernaghan & Co. Valentine pleaded guilty to securities fraud in the US and admitted to creating a culture of conflict of interest and noncompliance in Ontario.

The Commission found the settlement, which included a permanent director/officer ban, a 15-year cease-trade order, termination of registration, and a $100,000 costs payment, to be in the public interest.

The respondent challenged the constitutionality of the Criminal Code DNA warrant provisions authorizing seizure of bodily substances for forensic analysis.

The Court of Appeal held that the challenge was properly resolved under s. 8 of the Charter, and that if the regime satisfied s. 8 scrutiny it could not be contrary to the principles of fundamental justice under s. 7 on the self-incrimination theory advanced.

The court found the statutory scheme contained substantial judicial and privacy safeguards, upheld the ex parte warrant structure, and rejected the lower court's attempt to read in a notice requirement.

Fresh evidence concerning updated DNA technology undermined the basis for striking down the hair-sample provision, which was reinstated.

The cross-appeal was dismissed and the declaratory application was dismissed.