OCMT 2025

The applicant, a self-represented corporate entity, sought a review of a decision denying its application for listing on the Canadian Securities Exchange.

At a case management hearing, the applicant requested a highly compressed timeline for hearing its interlocutory motions and the merits application.

The Tribunal rejected the compressed timeline, noting the need for amended materials, proper disclosure, and adequate preparation time.

The Tribunal set a schedule for the exchange of materials and scheduled oral hearings by videoconference for the motions and the application.

The Tribunal also relieved the self-represented applicant from strict compliance with Rule 21, allowing it to file a list of documents instead of a formal motion record.

Katanga Mining Limited applied under section 17 of the Securities Act for permission to disclose confidential documents obtained during an Ontario Securities Commission investigation to its parent company, Glencore plc, for use in civil proceedings in the United Kingdom.

The Capital Markets Tribunal dismissed the application, finding that Katanga did not establish that the disclosure was in the public interest.

The Tribunal held that disclosure of information protected by section 16 for use in private civil proceedings is generally not in the public interest, and a foreign court order requiring production cannot alone satisfy the statutory public interest analysis.

The Ontario Securities Commission alleged that the respondent engaged in illegal insider trading after obtaining material non-public information about a corporate acquisition.

The respondent used her tax-free savings account to purchase call options before the public announcement, resulting in a significant profit.

The parties sought approval of a settlement agreement wherein the respondent admitted to the misconduct, agreed to a two-year trading restriction, and agreed to disgorge $120,000.

The Capital Markets Tribunal approved the settlement, finding it reasonable and in the public interest given the respondent's cooperation and lack of prior misconduct.

The applicants applied to vary an enforcement order made against them by the Capital Markets Tribunal, seeking to remove financial sanctions including a $13.5 million disgorgement order, a $600,000 administrative penalty, and a $166,000 cost award.

They argued that the sanctions prevented them from securing financing to renovate and reopen the Buffalo Grand Hotel, which was the only way investors could recover their funds.

The Tribunal dismissed the application, finding that the applicants' financing plan was speculative, incomplete, and subject to numerous uncertainties.

The Tribunal concluded that the applicants failed to demonstrate a material change in circumstances or that removing the sanctions would not be prejudicial to the public interest, noting that doing so would undermine specific and general deterrence.

The Ontario Securities Commission sought approval of a settlement agreement with the respondents regarding allegations of illegal insider trading and tipping.

The respondent Huynh, a VP of Finance at a reporting issuer, learned of an impending acquisition and tipped his wife, Pham.

They used an intermediary to purchase call options, realizing a profit of over US$311,000.

The Tribunal approved the settlement, which included trading bans, director/officer bans, an administrative penalty of $325,000, disgorgement of $270,000, and costs of $50,000, finding the terms reasonable and in the public interest.

Following a merits decision finding the respondents perpetrated securities fraud and made materially misleading statements regarding a share purchase transaction, the Capital Markets Tribunal determined the appropriate sanctions.

The Tribunal imposed permanent market participation and director/officer bans on TeknoScan, Kung, and Tam, and 20-year bans on Hyams.

Administrative penalties were ordered in the amounts of $150,000 against TeknoScan, $450,000 against Kung, $350,000 against Tam, and $250,000 against Hyams.

The respondents were also ordered to pay $400,000 in costs.

The Tribunal emphasized the need for specific and general deterrence, noting the serious nature of the fraud which deprived investors of fundamental information, while distinguishing between the respondents based on their culpability and acceptance of responsibility.

At a first case management hearing in an enforcement proceeding, the Capital Markets Tribunal declined to adopt the longer timetable proposed by the Ontario Securities Commission.

Emphasizing the statutory and procedural directives to ensure expeditious proceedings, the adjudicator largely accepted the respondents' proposed schedule and ordered the parties to provide availability for a merits hearing in 2026.

The Capital Markets Tribunal issued its sanctions and costs decision against the respondents following findings of fraud and obstruction of the Commission's investigation.

The Tribunal ordered significant administrative penalties, disgorgement, and permanent market bans against the senior officers for their roles in orchestrating and participating in multiple frauds that diverted over $100 million in investor funds.

The chief compliance officer, who acted under direction and cooperated with the investigation, received a lesser administrative penalty and a 10-year market ban.

The respondents were also ordered to pay a portion of the Commission's costs.

The Capital Markets Tribunal imposed sanctions on Phemex Limited and Phemex Technology Pte.

Ltd. for operating an unregistered crypto asset trading platform and selling securities to Ontario investors without a prospectus.

The respondents were permanently banned from participating in Ontario's capital markets and ordered to pay a $300,000 administrative penalty, disgorge US$39,712.43 in fees, and pay $134,975 in costs.

The Tribunal considered the respondents' cooperation as a mitigating factor in determining the administrative penalty.

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.

The Ontario Securities Commission alleged that the respondents violated Multilateral Instrument 91-102 by offering binary options to Ontario residents through an online trading platform, Polymarket.

The parties reached a settlement agreement wherein the respondents agreed to pay a voluntary payment of $22,966.75 USD, an administrative penalty of $200,000 CAD, and investigation costs of $25,000 CAD, along with market bans and an undertaking to restrict Ontario access.

The Capital Markets Tribunal approved the settlement, finding it reasonable and in the public interest.

The Ontario Securities Commission brought a motion to strike portions of the respondents' materials filed for a sanctions and costs hearing, arguing they contained references to communications protected by settlement privilege.

The respondents argued the materials fell under recognized exceptions to settlement privilege, including the right to make full answer and defence and relevance to costs.

The Capital Markets Tribunal granted the motion in part, striking all portions disclosing settlement discussions, finding no exceptions applied.

The Tribunal refused to strike claims that the respondents consistently cooperated with the Commission, as those did not offend settlement privilege.

The Ontario Securities Commission alleged that the respondent engaged in illegal insider trading by purchasing shares of a target company while possessing material non-public information obtained through his employment.

The parties reached a settlement agreement wherein the respondent admitted to the misconduct.

The Capital Markets Tribunal approved the settlement, finding it reasonable and in the public interest.

The respondent was ordered to pay an administrative penalty of $235,000, investigation costs of $22,336.27, and was subjected to ten-year market bans and a reprimand.

Katanga Mining Limited applied under s. 17(1) of the Securities Act to disclose confidential documents from an Ontario Securities Commission investigation to the internal and external counsel of its parent company, Glencore.

Glencore is a defendant in a UK civil claim and the UK Court ordered disclosure of these documents.

The Capital Markets Tribunal granted the application, finding it in the public interest to permit narrow disclosure to Glencore's counsel for the purpose of assessing relevance to the UK claim, provided the counsel sign undertakings to be bound by the confidentiality provisions of s. 16 of the Act.

The Ontario Securities Commission applied for inter-jurisdictional enforcement orders against the respondents based on a prior decision by the Québec Financial Markets Administrative Tribunal (FMAT).

The FMAT had found that the respondents operated an unregistered crypto asset trading platform, acted as unregistered dealers, and distributed securities without a prospectus.

The Capital Markets Tribunal found that the statutory preconditions were met to make an order without a hearing and that it was in the public interest to reciprocate the FMAT's non-monetary sanctions to protect Ontario investors.

The Ontario Securities Commission applied for inter-jurisdictional enforcement orders against the respondents, who operated an unregistered crypto asset trading platform.

The application sought to reciprocate sanctions imposed by the Québec Financial Markets Administrative Tribunal.

The Capital Markets Tribunal found that the statutory preconditions under s. 127(4.0.2) of the Securities Act were met and that it was in the public interest to permanently prohibit the respondents from participating in Ontario's capital markets, mirroring the non-monetary sanctions ordered in Québec.

The Ontario Securities Commission sought sanctions against Manticore Labs OÜ and Manticore Labs Inc. (operating as CoinField) following a merits decision finding they breached the Securities Act through unregistered trading, illegal distribution of securities, and making false and misleading statements to investors.

The respondents operated a crypto asset trading platform that went offline, leaving investors unable to withdraw their funds.

The Capital Markets Tribunal found the misconduct to be serious and ordered permanent market participation bans, an administrative penalty of $2.4 million, disgorgement of $537,034.46, and costs of $89,538.30.