Paul Saguil

Following a merits decision finding the respondents engaged in unregistered trading, illegal distribution, and fraud, the Ontario Securities Commission held a sanctions and costs hearing.

The individual respondent, who misappropriated over $4.6 million from investors in a fraudulent foreign exchange scheme, was permanently banned from the capital markets.

The Commission ordered disgorgement of $4,672,779.98, an administrative penalty of $750,000 to ensure specific and general deterrence, and $200,000 in costs.

The appellant appealed an order requiring it to deliver a signed release.

The motion judge had held that releasing an individual partner's 'agents' also released his law firm from vicarious liability for his conduct.

The Court of Appeal disagreed, finding that while a partner is an agent of the firm under the Partnership Act, the firm is not generally an agent of the individual partner.

The appeal was allowed in part to permit the appellant to plead that the law firm was vicariously liable for the partner's conduct.

Following a merits decision finding that Coventree Inc. and its senior officers, Geoffrey Cornish and Dean Tai, failed to disclose material changes in breach of the Securities Act, the Ontario Securities Commission held a hearing to determine sanctions and costs.

The Commission emphasized the fundamental importance of timely disclosure to the integrity of capital markets.

While noting mitigating factors such as the respondents' lack of intent to mislead and their cooperation with Staff, the Commission imposed significant administrative penalties to achieve specific and general deterrence.

Coventree was ordered to pay a $1 million penalty and $250,000 in costs, while Cornish and Tai were each ordered to pay a $500,000 penalty and were prohibited from acting as directors or officers of a reporting issuer for one year.

The appellant appealed the dismissal of his motion to certify a class proceeding against the City of Toronto.

The proposed class action alleged the City was negligent in failing to send statutory notices of rent reduction to tenants of rooming houses after municipal property taxes were reduced.

The motions judge had found it plain and obvious that the City owed no duty of care to the tenants.

The Divisional Court allowed the appeal, finding that based on the statutory scheme and the specific relationship created by the Parkdale Pilot Project, it was not plain and obvious that the City owed no duty of care.

The proceeding was certified as a class action.

The appellant voluntarily agreed to appear on the reality television show Dragons' Den and signed a consent agreement that precluded the two actions he subsequently commenced.

The appellant argued that it would be unconscionable to enforce the consent.

The Court of Appeal dismissed the appeal, finding that the appellant was given ample time to read the consent, did not ask for more time, and signed it without expressing any concern, making its enforcement not unconscionable.

The Registrar issued a Notice of Proposal to revoke the licensee's liquor licence and ordered an interim suspension due to numerous alleged violations, including serving alcohol after hours, locking doors while patrons were inside, and failing to intervene in assaults.

Following a hearing to consider rescinding the interim suspension, the Board found that lifting the suspension would compromise public safety based on the licensee's admissions in an Agreed Statement of Facts.

The Board ordered that the interim suspension remain in effect pending a final decision.

The appellant, a thoroughbred trainer, appealed a Stewards' Ruling suspending him for 15 days and imposing a $1,000 fine after his horse tested positive for Methocarbamol (Robaxin).

The appellant argued that the positive test resulted from a mistake by veterinary technicians who administered the wrong medication.

The Ontario Racing Commission denied the appeal, finding that the appellant failed to establish due diligence under the strict liability trainer responsibility rule, as he was not present during the administration of medications and did not ensure his instructions were followed.

The suspension was reduced to eight days in recognition of his excellent past record, with the remaining seven days stayed.