Welcome!

News Feed Item

OSC announces results of 2013 enforcement efforts

TORONTO, March 21, 2014 /CNW/ - The Ontario Securities Commission (OSC) announced today the results of its enforcement efforts for the 2013 calendar year.  Today's announcement demonstrates the OSC's continued commitment to deliver strong and effective enforcement for Ontarians with more criminal charges, concluded proceedings and sanctions secured in 2013 than in the previous year.

In 2013, proceedings were concluded against a total of 170 individuals and companies, up from 100 individuals and companies in 2012. Of these respondents, 71 were concluded by way of contested hearings before the Commission (60 in 2012), 95 by way of settlement agreements (36 in 2012) and four by way of court proceedings under securities legislation.

"We have a responsibility to protect investors and our capital markets," said Howard Wetston, Q.C., Chair and CEO of the OSC. "That's why the OSC is dedicated to delivering a vigorous and active enforcement program, one that will help us achieve our goal of confidence and integrity in our markets."

The number of sanctions imposed by the OSC increased during the year and included 159 cease trade orders (80 in 2012), 67 director and officer bans, (49 in 2012), 118 exemption removals (72 in 2012) and 81 registration restrictions (58 in 2012). In addition, the OSC secured a total of 63 months in jail sentences against four defendants, up from a total of 21 months against two defendants in 2012.

New to the OSC's enforcement arsenal in 2013 is the Joint Serious Offenses Team (JSOT), an enforcement partnership between the OSC, the Ontario Provincial Police Anti Rackets Branch and the Royal Canadian Mounted Police Financial Crime program. JSOT investigates serious violations of the law using provisions of the Ontario Securities Act or the Criminal Code of Canada.

The team includes former police officers, former Crown attorneys and forensic accountants who work closely with police agencies and the Ministry of the Attorney General to bring more cases to the courts.

The OSC also continued to work closely with its international and domestic partners on various enforcement files to achieve its enforcement goals in 2013. Last year, the OSC received an increased number of requests for assistance - a total of 68, up from 59 in 2012.  Progress was also made in 2013 on a number of new policy initiatives intended to strengthen the OSC's enforcement presence and effectiveness. In June of last year, the OSC hosted a policy hearing (link to transcript) to consider proposed new enforcement tools, which were announced on March 11, 2014 in Staff Notice 15-702: Revised Credit for Cooperation Program.

2013 Enforcement Data:

Total Proceedings Commenced:

Category

Number of cases 2013*

Number of Cases 2012

Illegal Distributions

6

6

Misconduct by Registrants

2

2

Disclosure Violations

-

-

Insider Trading

2

2

Market Manipulation

1

-

Fraud

9

15

Miscellaneous

7

5

Total

27

30

 

Proceedings Commenced - Respondents:

Category

Individuals2013

Companies 2013

Individuals 2012

Companies 2012

Illegal Distributions

9

40

16

9

Misconduct by Registrants

3

3

4

4

Disclosure Violations

-

-

-

-

Insider Trading

2

-

12

1

Market Manipulation

1

-

-

-

Fraud

18

9

35

21

Miscellaneous

6

5

4

1

Total

39

57

71

36

* note:  includes 6 proceedings  commenced before the Courts, 4 pursuant to s. 122 and 2 pursuant to the Criminal Code.

Interim Orders: Interim orders protect investors by prohibiting or inhibiting potentially illegal activity while an investigation is underway.


Cases

2013

Individuals

2013

Companies

2013

Cases

2012

Individuals

2012

Companies

2012

Total

4

4

9

8

7

13

 

Concluded Proceedings: A proceeding is concluded when the Commission or the courts make a decision and any sanctions are ordered.

Category

Individuals

2013

Companies

2013

Individuals

2012

Companies

2012

Illegal Distribution

30

59

20

6

Misconduct by Registrants

3

5

8

7

Disclosure Violations

1

-

1

-

Insider Trading

2

-

2

-

Market Manipulation

1

-

-

-

Fraud

35

26

25

23

Miscellaneous

5

3

7

1

Total

77

93

63

37

 

How matters were concluded (by number of respondents):

Category

2013

2012

Hearing before the Tribunal

71

60

Settlement Agreement

95

36

Court Proceedings

4

4

Total

170

100

 

Protective Sanctions: The Commission can impose bans on future activity, such as trading in securities (cease trade orders), acting as a director or officer of a public company, and acting as or becoming a registrant. The Commission can also remove prospectus and registration exemptions available under the Act.

Category

2013

2012

Cease Trade Orders

159

80

Director and Officer Bans

67

49

Exemption Removals

118

72

Registration Restrictions

81

58

 

Monetary Sanctions: The Commission can impose monetary sanctions and bans on individuals and companies for violations of securities law or conduct that is contrary to the public interest. Adjudicative tribunals can also order a respondent to pay the costs of an investigation and/or hearing. The courts have the authority to impose fines, jail terms, and restitution.

Monetary sanctions include penalties, settlements and disgorgement. Disgorgement requires the respondent to pay the OSC the amount the respondent obtained as a result of the illegal activity.

OSC

Total Dollar Amount

2013

Total Dollar Amount

2012

Administrative Penalties/Settlements

$14,741,854

$13,648,572

Disgorgement

$40,242,705

$61,503,163

Costs

$3,176,936

$2,980,121

OSC Total

$58,161,495

$78,131,856




Courts



Restitution

$155,000

-

Court Total

$155,000

-

 

Cases ongoing before the courts, including criminal, as at December 31:

2013

2012

9

7

 

International Efforts:

Jurisdiction

Requests for assistance received by  the OSC 2013

Requests for assistance made by the OSC 2013

Assistance files open as at December 31, 2013

International

17

19

25

United States

37

20

47

Domestic

14

7

23

Total

68

46

95

Jurisdiction

Requests for assistance received by  the OSC 2012

Requests for assistance made by the OSC 2012

Assistance files open as at December 31, 2012

International

19

35

15

United States

30

14

25

Domestic

10

8

19

Total

59

57

59

SOURCE Ontario Securities Commission

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
The security needs of IoT environments require a strong, proven approach to maintain security, trust and privacy in their ecosystem. Assurance and protection of device identity, secure data encryption and authentication are the key security challenges organizations are trying to address when integrating IoT devices. This holds true for IoT applications in a wide range of industries, for example, healthcare, consumer devices, and manufacturing. In his session at @ThingsExpo, Lancen LaChance, vic...
While many government agencies have embraced the idea of employing cloud computing as a tool for increasing the efficiency and flexibility of IT, many still struggle with large scale adoption. The challenge is mainly attributed to the federated structure of these agencies as well as the immaturity of brokerage and governance tools and models. Initiatives like FedRAMP are a great first step toward solving many of these challenges but there are a lot of unknowns that are yet to be tackled. In hi...
Who are you? How do you introduce yourself? Do you use a name, or do you greet a friend by the last four digits of his social security number? Assuming you don’t, why are we content to associate our identity with 10 random digits assigned by our phone company? Identity is an issue that affects everyone, but as individuals we don’t spend a lot of time thinking about it. In his session at @ThingsExpo, Ben Klang, Founder & President of Mojo Lingo, discussed the impact of technology on identity. Sho...
Manufacturers are embracing the Industrial Internet the same way consumers are leveraging Fitbits – to improve overall health and wellness. Both can provide consistent measurement, visibility, and suggest performance improvements customized to help reach goals. Fitbit users can view real-time data and make adjustments to increase their activity. In his session at @ThingsExpo, Mark Bernardo Professional Services Leader, Americas, at GE Digital, discussed how leveraging the Industrial Internet and...
What are the new priorities for the connected business? First: businesses need to think differently about the types of connections they will need to make – these span well beyond the traditional app to app into more modern forms of integration including SaaS integrations, mobile integrations, APIs, device integration and Big Data integration. It’s important these are unified together vs. doing them all piecemeal. Second, these types of connections need to be simple to design, adapt and configure...
IoT generates lots of temporal data. But how do you unlock its value? You need to discover patterns that are repeatable in vast quantities of data, understand their meaning, and implement scalable monitoring across multiple data streams in order to monetize the discoveries and insights. Motif discovery and deep learning platforms are emerging to visualize sensor data, to search for patterns and to build application that can monitor real time streams efficiently. In his session at @ThingsExpo, ...
"Splunk basically takes machine data and we make it usable, valuable and accessible for everyone. The way that plays in DevOps is - we need to make data-driven decisions to delivering applications," explained Andi Mann, Chief Technology Advocate at Splunk and @DevOpsSummit Conference Chair, in this SYS-CON.tv interview at @DevOpsSummit at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
In his session at @DevOpsSummit at 19th Cloud Expo, Robert Doyle, lead architect at eCube Systems, will examine the issues and need for an agile infrastructure and show the advantages of capturing developer knowledge in an exportable file for migration into production. He will introduce the use of NXTmonitor, a next-generation DevOps tool that captures application environments, dependencies and start/stop procedures in a portable configuration file with an easy-to-use GUI. In addition to captur...
"Logz.io is a log analytics platform. We offer the ELK stack, which is the most common log analytics platform in the world. We offer it as a cloud service," explained Tomer Levy, co-founder and CEO of Logz.io, in this SYS-CON.tv interview at DevOps Summit, held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA.
WebRTC is about the data channel as much as about video and audio conferencing. However, basically all commercial WebRTC applications have been built with a focus on audio and video. The handling of “data” has been limited to text chat and file download – all other data sharing seems to end with screensharing. What is holding back a more intensive use of peer-to-peer data? In her session at @ThingsExpo, Dr Silvia Pfeiffer, WebRTC Applications Team Lead at National ICT Australia, looked at differ...
"ReadyTalk is an audio and web video conferencing provider. We've really come to embrace WebRTC as the platform for our future of technology," explained Dan Cunningham, CTO of ReadyTalk, in this SYS-CON.tv interview at WebRTC Summit at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
A critical component of any IoT project is what to do with all the data being generated. This data needs to be captured, processed, structured, and stored in a way to facilitate different kinds of queries. Traditional data warehouse and analytical systems are mature technologies that can be used to handle certain kinds of queries, but they are not always well suited to many problems, particularly when there is a need for real-time insights.
In his General Session at 16th Cloud Expo, David Shacochis, host of The Hybrid IT Files podcast and Vice President at CenturyLink, investigated three key trends of the “gigabit economy" though the story of a Fortune 500 communications company in transformation. Narrating how multi-modal hybrid IT, service automation, and agile delivery all intersect, he will cover the role of storytelling and empathy in achieving strategic alignment between the enterprise and its information technology.
Hardware virtualization and cloud computing allowed us to increase resource utilization and increase our flexibility to respond to business demand. Docker Containers are the next quantum leap - Are they?! Databases always represented an additional set of challenges unique to running workloads requiring a maximum of I/O, network, CPU resources combined with data locality.
Growth hacking is common for startups to make unheard-of progress in building their business. Career Hacks can help Geek Girls and those who support them (yes, that's you too, Dad!) to excel in this typically male-dominated world. Get ready to learn the facts: Is there a bias against women in the tech / developer communities? Why are women 50% of the workforce, but hold only 24% of the STEM or IT positions? Some beginnings of what to do about it! In her Day 2 Keynote at 17th Cloud Expo, Sandy Ca...