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Tribunal finds real estate developer defrauded investors and misled regulator, but dismisses unregistered trading allegations.
The Ontario Securities Commission alleged that Oscar Furtado and his corporate entities defrauded investors in several real estate limited partnerships, traded securities without registration, and made misleading statements to the Commission.
The Capital Markets Tribunal found that Furtado perpetrated a securities fraud in five ways, including failing to disclose his intent to profit from a property acquisition, redeeming units contrary to representations, and misusing assets of other partnerships.
The Tribunal also found that Furtado made misleading statements to the Commission during its investigation.
However, the Tribunal dismissed the allegations that the respondents engaged in the business of trading securities without registration, finding they were raising capital for an underlying real estate business.
Application to enforce Letters Rogatory granted on a narrowed basis to compel non-party document production.
The applicants sought an order to enforce Letters Rogatory issued by a New York Court in a U.S. securities class action, compelling production of documents from the respondent, a non-party Ontario corporation.
The respondent opposed the application, arguing the requests were overly broad, irrelevant, and unduly burdensome.
The court applied the Friction Division guideposts and granted the application on a narrowed basis, restricting the temporal scope of the production and establishing a staged process to manage the costs and burden of electronic document review.
