OCMT 2018

The respondent Sidders brought a motion to sever his hearing from that of the other respondents in an insider trading and tipping case.

He argued that most allegations did not involve him and that a joint hearing would cause prejudice and delay.

The Commission applied the factors from R v Last and concluded that the legal and factual nexus between the transactions, the risk of inconsistent verdicts, and the desire to avoid a multiplicity of proceedings strongly favoured a joint hearing.

The motion for severance was dismissed.

Staff of the Ontario Securities Commission applied for a reciprocal order under subsection 127(10) of the Securities Act based on a decision of the British Columbia Securities Commission.

The BCSC had found that the respondents engaged in a 'pump and dump' market manipulation scheme and imposed permanent market prohibitions and administrative penalties.

The respondents did not participate in the written hearing.

The Commission granted the reciprocal order, imposing permanent trading and registration bans with minor modifications to the carveouts to protect Ontario investors.

Following a merits decision finding that the respondents perpetrated a massive corporate fraud involving standing timber assets and related party transactions, the Ontario Securities Commission held a sanctions and costs hearing.

The Commission imposed permanent market participation bans on the individual respondents.

It also ordered administrative penalties totaling over $11.6 million and disgorgement of over $64.6 million, representing salaries, bonuses, and proceeds obtained through the fraudulent conduct.

The respondents were also ordered to pay over $5 million in costs.

Staff of the Ontario Securities Commission sought an inter-jurisdictional enforcement order against the respondent under subsection 127(10) of the Securities Act.

The respondent had previously entered into a settlement agreement with the Alberta Securities Commission, admitting to unregistered trading, illegal distributions, and misrepresentations.

The Ontario Securities Commission found that the statutory threshold was met and that it was in the public interest to issue a reciprocal order.

The Commission ordered trading and market-access bans against the respondent until December 19, 2027, substantially mirroring the sanctions agreed to in Alberta.

Staff of the Ontario Securities Commission sought an inter-jurisdictional enforcement order under subsection 127(10) of the Securities Act against the respondents, based on a prior order of the British Columbia Securities Commission (BCSC).

The BCSC had found that the respondents engaged in illegal distributions of securities and imposed market-access bans and an administrative penalty.

The Ontario Securities Commission granted the application, finding that the statutory threshold was met and that it was in the public interest to impose reciprocal protective and preventive sanctions, including permanent market-access bans against the corporate respondents and time-limited bans against the individual respondent, to protect Ontario's capital markets.

Staff of the Commission and the respondent reached a settlement agreement regarding allegations of insider tipping, making misleading statements to Staff, and breaching the confidentiality of an investigation.

The respondent admitted to tipping a colleague about material undisclosed facts regarding a public company, lying under oath, and disclosing his compelled examination.

The Commission approved the settlement, which included a six-year ban on trading and acting as a director or officer, a $350,000 administrative penalty, and $50,000 in costs.

The Commission found the settlement fell within the range of reasonable outcomes and was in the public interest, noting mitigating factors such as the respondent's loss of employment and agreement to cooperate with Staff.

The Ontario Securities Commission approved a settlement agreement between Staff and Clayton Smith, the directing mind of Crystal Wealth Management System Limited.

Smith admitted to fraudulently misappropriating approximately $11.8 million from mutual funds he managed and failing to disclose conflicts of interest.

The settlement imposed permanent market prohibitions, a reprimand, and a $250,000 administrative penalty.

The Commission approved the settlement, noting that while the monetary penalty was small and potentially uncollectible due to a carveout provision and a receivership over Smith's assets, the permanent market prohibitions and the avoidance of a lengthy hearing made the sanctions fall within a reasonable range of appropriateness.

The Ontario Securities Commission approved a settlement agreement with Royal Mutual Funds Inc. (RMFI) regarding breaches of mutual fund sales practices.

RMFI paid its representatives enhanced compensation for selling proprietary funds over third-party funds, contravening NI 81-105, and failed to maintain adequate compliance systems under NI 31-103.

The Commission approved the settlement, which included a reprimand, a $1,100,000 administrative penalty, and $20,000 in costs, finding it reasonable and in the public interest given RMFI's cooperation and remedial steps.

The respondent, former general counsel for Pacific Rubiales Energy Corporation, traded in the company's debentures while the company was involved in a due diligence process regarding a potential acquisition.

As the person responsible for supervising the company's Insider Trading Policy, the respondent failed to adhere to the high standard of conduct expected of him by not erring on the side of caution, despite his good faith belief that he did not possess material undisclosed information.

The Ontario Securities Commission approved a settlement agreement wherein the respondent admitted his conduct was contrary to the public interest, agreed to a $30,000 voluntary payment, a reprimand, $10,000 in costs, and undertakings to obtain external legal advice for future trades and complete an educational program.

Staff of the Ontario Securities Commission sought an inter-jurisdictional enforcement order against the respondent under subsection 127(10) of the Securities Act, based on a prior decision of the Alberta Securities Commission (ASC).

The ASC had found that the respondent engaged in illegal distributions of securities and made misleading statements to investors, imposing permanent market-access bans and financial penalties.

The Commission found that the threshold for a reciprocal order was met and that it was in the public interest to protect Ontario capital markets.

The Commission ordered permanent trading and market-access bans against the respondent, substantially mirroring the ASC's sanctions.

Staff of the Ontario Securities Commission alleged that the respondent dealers failed to establish sufficient controls and supervision, resulting in clients paying excess fees.

The dealers self-reported the inadequacies, co-operated with Staff, and agreed to pay approximately $11 million in compensation to affected clients, along with voluntary payments totalling $490,000.

The Commission approved the no-contest settlement, finding it in the public interest given the prompt self-reporting, remediation efforts, and significant compensation paid to clients.

The respondent, a former CFO and director of a reporting issuer, entered into a settlement agreement with Staff of the Commission regarding his participation in a manipulative trading scheme prior to becoming an officer.

The respondent admitted to participating in transactions that created a misleading appearance of market activity at the direction of the company's founder.

The Commission approved the settlement, finding it in the public interest given the respondent's lack of market experience, voluntary resignation, cooperation, and lack of profit.

The respondent was ordered to pay $12,500, subjected to one-year trading and director/officer bans, and reprimanded.

The respondent, former CEO and director of a public company, admitted to participating in and facilitating manipulative trading in the company's shares by providing his trading account access to the company's founder.

Staff of the Commission and the respondent reached a settlement agreement.

The Commission approved the settlement, finding it in the public interest, and ordered a reprimand, a $12,500 administrative penalty, and two-year bans on trading, acquiring securities, and acting as a director or officer of a reporting issuer.

The Ontario Securities Commission approved a settlement agreement between Staff and Global RESP Corporation.

The firm admitted to failing to implement policies and procedures to ensure compliance with a 2014 settlement, which prohibited its CEO from acting as an officer.

The approved settlement imposed terms and conditions on the firm's registration, an administrative penalty of $50,000, costs of $25,000, and a reprimand.

The respondent breached a prior Commission order permanently prohibiting him from trading in securities by selling securities to repay a personal debt.

Staff and the respondent reached a settlement agreement imposing a $120,000 administrative penalty, $5,000 in costs, and a second reprimand.

The Commission approved the settlement, affirming that the traditional reasonableness standard applies to securities regulatory settlements rather than the more stringent standard for criminal joint submissions established in Anthony-Cook.

The British Columbia Securities Commission (BCSC) found that the respondent perpetrated a fraud on investors by diverting funds for personal use and imposed sanctions including trading bans and financial penalties.

Staff of the Ontario Securities Commission sought a reciprocal protective order under subsections 127(1) and 127(10) of the Securities Act.

The Commission granted the order, finding it necessary to protect Ontario capital markets, and permanently prohibited the respondent from trading in securities, acting as a director or officer, or acting as a registrant or investment fund manager.

The respondent, an officer and director of Big Rock Labs Inc., engaged in manipulative trading of the company's shares using multiple accounts, creating a misleading appearance of market activity.

Staff of the Ontario Securities Commission and the respondent entered into a settlement agreement wherein the respondent admitted to breaching s. 126.1(1)(a) of the Securities Act.

The Commission approved the settlement as being in the public interest, imposing a $100,000 administrative penalty, $25,000 in costs, and various five-year market prohibitions.

The respondent, a legal assistant, admitted to providing non-public, confidential information regarding merger and acquisition transactions to another respondent over a four-year period, in breach of the Securities Act.

Staff and the respondent entered into a settlement agreement, which included significant credit for the respondent's cooperation with Staff's investigation against the non-settling respondents.

The Commission approved the settlement agreement, finding the reduced sanctions, which included a reprimand and market bans but no financial penalties, to be reasonable and in the public interest.

The respondent, an insider of a reporting issuer, admitted to engaging in a course of conduct that created a misleading appearance of trading activity and failing to file insider reports.

Staff of the Commission and the respondent jointly submitted a Settlement Agreement for approval.

The Panel approved the settlement, finding it to be in the public interest, and imposed sanctions including a $10,000 administrative penalty, $5,000 in costs, and various trading and director/officer bans.

Staff of the Ontario Securities Commission sought approval of a settlement agreement with the respondent following an inter-jurisdictional proceeding based on an SEC order.

The SEC had found that the respondent failed to disclose substantial perquisites and personal expense reimbursements in proxy statements.

The Commission approved the settlement, noting the respondent's cooperation and the terms already imposed on his registered firms, and ordered him to resign and be prohibited from acting as an officer or director of any Ontario reporting issuer for five years.