Criminal and Quasi-Criminal Law - OCMT

Staff of the Ontario Securities Commission sought an order imposing permanent market bans on the respondent under subsections 127(1) and (10) of the Securities Act.

The respondent had previously been convicted of criminal fraud over $5,000 for operating a $7.5 million mortgage investment Ponzi scheme and was sentenced to seven years in prison.

The respondent conceded to the conditions of the order requested by Staff.

The Commission found that the respondent's conduct was highly abusive and detrimental to the integrity of the capital markets.

To protect the public interest and provide specific and general deterrence, the Commission ordered permanent cease trade and market prohibition bans against the respondent.

The applicant, Y, applied under section 17 of the Securities Act for disclosure of compelled and voluntary evidence obtained by the Ontario Securities Commission during an investigation.

Y sought the evidence to make full answer and defence to criminal fraud charges.

The Commission balanced Y's right to make full answer and defence against the privacy interests of the witnesses who provided the evidence.

The Commission granted disclosure for witnesses who consented or did not object, and for those who opposed but were on the Crown's witness list, subject to strict confidentiality terms.

Disclosure was denied for opposing witnesses not on the Crown's witness list.

The Royal Canadian Mounted Police (the Crown) applied under section 17(1) of the Securities Act for disclosure of compelled evidence obtained by the Ontario Securities Commission during an investigation.

The evidence was sought to assist in the criminal prosecution of the respondent for fraud.

The Commission granted the application, finding that the relevant witnesses had provided written consent to the disclosure and that authorizing disclosure to the Crown, subject to strict confidentiality and use conditions, was in the public interest and would not prejudice the respondent's right to make full answer and defence.

The RCMP (Crown) applied under s. 17(1) of the Securities Act for disclosure of compelled evidence obtained by the Ontario Securities Commission during an investigation.

The evidence was sought to assist the Crown in a criminal fraud proceeding against the respondent.

The Commission found that the respondents whose evidence was sought had provided written consent as required by s. 17(3).

Applying the factors from Re Black, the Commission determined it was in the public interest to authorize disclosure, as the consenting respondents waived confidentiality, and the disclosure would not prejudice the respondent's right to make full answer and defence.

The application was granted subject to strict confidentiality and use conditions.