Ontario Securities Commission
File No. 2020-38
IN THE MATTER OF DANIEL SHEEHAN
REASONS FOR APPROVAL OF A SETTLEMENT
(Sections 127 and 127.1 of the Securities Act, RSO 1990, c S.5)
Hearing: October 7, 2021
Decision: October 12, 2021
Panel: Wendy Berman Vice-Chair and Chair of the Panel
Appearances: Rikin Morzaria For Staff of the Commission
Caitlin Sainsbury For Daniel Sheehan
REASONS FOR APPROVAL OF A SETTLEMENT
I. overview
1Staff of the Ontario Securities Commission (Staff of the Commission), and Daniel Sheehan have jointly submitted that it would be in the public interest to approve a settlement agreement entered into between Mr. Sheehan and Staff dated October 4, 2021 (the Settlement Agreement).
2This matter concerns allegations described in the Statement of Allegations dated November 3, 2020. Specifically, Staff allege that Mr. Sheehan contravened Ontario securities law by engaging in the business of trading and advising in securities and by acting as an investment fund manager without registration and where no exemptions were available.
3After considering the Settlement Agreement and the submissions of the parties, I have concluded that it would be in the public interest to approve the Settlement Agreement. These are my reasons.
II. summary of the facts
4The underlying facts and the specific breaches of Ontario securities laws are fully set out in the Settlement Agreement, which has been filed with the Commission and is publicly available. Accordingly, I need not repeat them in detail here.
5In summary, during a 10-year period from September 28, 2009 to April 30, 2019, Mr. Sheehan raised approximately $25 million from about 50 Ontario investors and invested these funds in publicly traded equities, fixed income securities and exchange-traded derivatives.
6Mr. Sheehan carried on this activity through an Ontario limited partnership, Sheehan Associates Limited Partnership (SALP), and had authority to make all decisions regarding the business of the partnership, including all investment decisions.