The appellants, former senior executives of Sino-Forest Corporation, appealed the Ontario Securities Commission's decisions finding they engaged in a massive securities fraud and imposing significant sanctions, including disgorgement and administrative penalties.
The appellants argued the Commission failed to account for Chinese business and cultural practices (guanxi) when determining their intent to defraud, alleged a reasonable apprehension of bias by the panel chair, and challenged the sanctions as excessive.
The Divisional Court dismissed the appeal, holding that Ontario securities law overrides cultural practices for reporting issuers, the bias claim was unfounded, and the sanctions were reasonable given the enormity of the fraud and the need for deterrence.