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
Identity is in everything and customers are looking to their providers to ensure the security of their identities, transactions and data. With the increased reliance on cloud-based services, service providers must build security and trust into their offerings, adding value to customers and improving the user experience. Making identity, security and privacy easy for customers provides a unique advantage over the competition.
Qosmos has announced new milestones in the detection of encrypted traffic and in protocol signature coverage. Qosmos latest software can accurately classify traffic encrypted with SSL/TLS (e.g., Google, Facebook, WhatsApp), P2P traffic (e.g., BitTorrent, MuTorrent, Vuze), and Skype, while preserving the privacy of communication content. These new classification techniques mean that traffic optimization, policy enforcement, and user experience are largely unaffected by encryption. In respect wit...
SYS-CON Events announced today that StarNet Communications will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. StarNet Communications’ FastX is the industry first cloud-based remote X Windows emulator. Using standard Web browsers (FireFox, Chrome, Safari, etc.) users from around the world gain highly secure access to applications and data hosted on Linux-based servers in a central data center. ...
Smart Cities are here to stay, but for their promise to be delivered, the data they produce must not be put in new siloes. In his session at @ThingsExpo, Mathias Herberts, Co-founder and CTO of Cityzen Data, will deep dive into best practices that will ensure a successful smart city journey.
SYS-CON Events announced today that 910Telecom will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Housed in the classic Denver Gas & Electric Building, 910 15th St., 910Telecom is a carrier-neutral telecom hotel located in the heart of Denver. Adjacent to CenturyLink, AT&T, and Denver Main, 910Telecom offers connectivity to all major carriers, Internet service providers, Internet backbones and ...
Traditional on-premises data centers have long been the domain of modern data platforms like Apache Hadoop, meaning companies who build their business on public cloud were challenged to run Big Data processing and analytics at scale. But recent advancements in Hadoop performance, security, and most importantly cloud-native integrations, are giving organizations the ability to truly gain value from all their data. In his session at 19th Cloud Expo, David Tishgart, Director of Product Marketing ...
StarNet Communications Corp has announced the addition of three Secure Remote Desktop modules to its flagship X-Win32 PC X server. The new modules enable X-Win32 to safely tunnel the remote desktops from Linux and Unix servers to the user’s PC over encrypted SSH. Traditionally, users of PC X servers deploy the XDMCP protocol to display remote desktop environments such as the Gnome and KDE desktops on Linux servers and the CDE environment on Solaris Unix machines. XDMCP is used primarily on comp...
Almost two-thirds of companies either have or soon will have IoT as the backbone of their business in 2016. However, IoT is far more complex than most firms expected. How can you not get trapped in the pitfalls? In his session at @ThingsExpo, Tony Shan, a renowned visionary and thought leader, will introduce a holistic method of IoTification, which is the process of IoTifying the existing technology and business models to adopt and leverage IoT. He will drill down to the components in this fra...
Why do your mobile transformations need to happen today? Mobile is the strategy that enterprise transformation centers on to drive customer engagement. In his general session at @ThingsExpo, Roger Woods, Director, Mobile Product & Strategy – Adobe Marketing Cloud, covered key IoT and mobile trends that are forcing mobile transformation, key components of a solid mobile strategy and explored how brands are effectively driving mobile change throughout the enterprise.
DevOps at Cloud Expo – being held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA – announces that its Call for Papers is open. Born out of proven success in agile development, cloud computing, and process automation, DevOps is a macro trend you cannot afford to miss. From showcase success stories from early adopters and web-scale businesses, DevOps is expanding to organizations of all sizes, including the world's largest enterprises – and delivering real results. Am...
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devices - comp...
As the world moves toward more DevOps and Microservices, application deployment to the cloud ought to become a lot simpler. The Microservices architecture, which is the basis of many new age distributed systems such as OpenStack, NetFlix and so on, is at the heart of Cloud Foundry - a complete developer-oriented Platform as a Service (PaaS) that is IaaS agnostic and supports vCloud, OpenStack and AWS. Serverless computing is revolutionizing computing. In his session at 19th Cloud Expo, Raghav...
DevOps at Cloud Expo, taking place Nov 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long dev...
Data is the fuel that drives the machine learning algorithmic engines and ultimately provides the business value. In his session at Cloud Expo, Ed Featherston, a director and senior enterprise architect at Collaborative Consulting, will discuss the key considerations around quality, volume, timeliness, and pedigree that must be dealt with in order to properly fuel that engine.
There is growing need for data-driven applications and the need for digital platforms to build these apps. In his session at 19th Cloud Expo, Muddu Sudhakar, VP and GM of Security & IoT at Splunk, will cover different PaaS solutions and Big Data platforms that are available to build applications. In addition, AI and machine learning are creating new requirements that developers need in the building of next-gen apps. The next-generation digital platforms have some of the past platform needs a...