The Ontario Securities Commission brought an enforcement proceeding against the respondent, alleging he perpetrated a fraud and made misleading statements contrary to the Securities Act by drafting press releases for a public company that contained false information.
The Capital Markets Tribunal dismissed the application, finding that while the press releases were misleading, they were issued by the corporation, not the respondent.
The Tribunal held that drafting corporate communications does not constitute making a statement to the investing public under s. 126.2(1), nor does it constitute perpetrating a fraud on the public under s. 126.1(1)(b), absent evidence that the respondent caused or duped the corporation into issuing them.
