OCMT 2012

The respondent, Caroline Myriam Frayssignes, brought a motion requesting that all documentary evidence relied upon by Staff at the merits hearing be translated into French.

The Commission dismissed the motion, finding that there is no absolute right to the translation of third-party documents or internal investigation evidence under the French Language Services Act, as such evidence does not constitute a 'service' provided to the public.

Furthermore, the Commission held that the respondent failed to demonstrate any actual prejudice to her right to make full answer and defence that would warrant an order for translation on procedural fairness grounds.

Staff of the Commission brought allegations against the respondents for failing to maintain an audit committee, failing to file audited annual financial statements, and obstructing the audit process.

The respondents did not appear at the hearing.

Based on uncontroverted affidavit evidence, the Commission found that the corporate respondent breached continuous disclosure obligations and that the individual respondents authorized, permitted, or acquiesced in these breaches and obstructed the auditor and independent investigations.

The Commission made findings on the merits and directed the scheduling of a sanctions hearing.

In an oral decision on the merits, the Ontario Securities Commission found that the respondents breached the Securities Act by perpetrating a fraud on investors, trading securities without registration, and authorizing corporate breaches.

The respondents failed to attend the hearing and Staff's evidence was uncontroverted.

The Commission concluded the respondents acted contrary to the public interest, with reasons to follow and a sanctions hearing to be scheduled.