Capital Markets Tribunal

Staff of the Ontario Securities Commission alleged that the respondents engaged in unregistered trading and advising, and distributed securities without a prospectus, in relation to an 'Asset Securitization Management Portfolio' promoted on their website.

The Commission found that the Trading Program was an investment contract and therefore a security.

The Commission held that offering the program on the internet constituted an act in furtherance of a trade, and that the respondents held themselves out as being in the business of advising.

Given the individual respondent's past criminal convictions for fraud and the highly questionable nature of the investment scheme, the Commission ordered permanent cease trade and director/officer bans.

The Staff of the Investment Dealers Association of Canada applied for a hearing and review of a District Council decision regarding a registered representative who traded for a client attempting to manipulate the market price of a security.

The District Council had dismissed the allegation that the respondent facilitated the business of an unregistered entity and imposed a penalty without a fine or disgorgement.

The Ontario Securities Commission found that the District Council misapprehended the evidence of facilitation and the public interest in strong sanctions for willful market manipulation.

The Commission set aside the dismissal, imposed a fine of $128,504.55 (including disgorgement of commissions), and suspended the respondent's approval for seven years.