The appellant appealed a decision of the Capital Markets Tribunal finding that he engaged in fraudulent conduct under s. 126.1 of the Securities Act by approving unauthorized transfers of cash between investment funds to pay distributions and dealer fees.
The appellant argued the Panel erred in its factual findings, its rejection of his due diligence and reliance on legal advice defences, and its imposition of sanctions.
The Divisional Court dismissed the appeal, finding no palpable and overriding error in the Panel's factual findings or legal analysis, but reduced the disgorgement order from $51,361 to $45,298 based on a concession by the respondent regarding the calculation methodology.
