Other Tribunals - OCMT

The Ontario Securities Commission brought a motion to strike portions of the respondent's written submissions on the basis that they contained references to communications protected by settlement privilege.

The respondent argued that the request was overly broad and that mentioning the mere fact that a settlement offer was made did not violate the privilege.

The Capital Markets Tribunal granted the motion in part, holding that while the content and substance of settlement discussions are strictly protected and must be struck, the mere mention of the existence of settlement discussions or the fact that an offer was made does not disclose the substance of the communications and is not protected by settlement privilege.

Staff of the Ontario Securities Commission brought an inter-jurisdictional enforcement proceeding against the respondent following his criminal conviction for unregistered trading, illegal distribution of securities, and securities fraud.

The respondent had been sentenced to three and a half years of incarceration and ordered to pay over $4.8 million in restitution.

The Capital Markets Tribunal found that the respondent's conduct, which involved defrauding investors of approximately $5.5 million over three years, warranted severe regulatory sanctions.

The Tribunal permanently banned the respondent from participating in Ontario's capital markets, including permanent prohibitions on trading, acquiring securities, and acting as a director, officer, registrant, or promoter.

The respondent, Oscar Furtado, brought a motion to adjourn the merits hearing indefinitely due to serious physical and mental health issues.

He also requested that the motion be heard in confidence and that documents containing his personal health information be sealed.

The Capital Markets Tribunal found that Furtado's health constituted exceptional circumstances warranting an adjournment, but declined to grant an indefinite delay, rescheduling the hearing to November 2023.

Applying the Sherman Estate test, the Tribunal ordered that specific details regarding Furtado's symptoms, diagnosis, and treatment be redacted from the adjudicative record and hearing transcript to protect his personal dignity, while maintaining the public's right to know how his health issues affected his ability to participate.

Staff of the Ontario Securities Commission sought a reciprocating order under subsection 127(1) of the Securities Act based on a settlement agreement and order made by the British Columbia Securities Commission against the respondent.

The respondent had admitted to acting in furtherance of trades in securities contrary to prospectus requirements by signing promissory notes as a director of a guarantor.

The Commission granted the reciprocating order, prohibiting the respondent from trading in securities, acting as a director or officer of an issuer, registrant, or investment fund manager, and acting as a registrant, investment fund manager, or promoter, mirroring the BC Order with necessary modifications for Ontario.