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
Businesses and business units of all sizes can benefit from cloud computing, but many don't want the cost, performance and security concerns of public cloud nor the complexity of building their own private clouds. Today, some cloud vendors are using artificial intelligence (AI) to simplify cloud deployment and management. In his session at 20th Cloud Expo, Ajay Gulati, Co-founder and CEO of ZeroStack, will discuss how AI can simplify cloud operations. He will cover the following topics: why clou...
CloudJumper, a Workspace as a Service (WaaS) platform innovator for agile business IT, has been recognized with the Customer Value Leadership Award for its nWorkSpace platform by Frost & Sullivan. The company was also featured in a new report(1) by the industry research firm titled, “Desktop-as-a-Service Buyer’s Guide, 2016,” which provides a comprehensive comparison of DaaS providers, including CloudJumper, Amazon, VMware, and Microsoft.
"Dice has been around for the last 20 years. We have been helping tech professionals find new jobs and career opportunities," explained Manish Dixit, VP of Product and Engineering at Dice, in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
"Qosmos has launched L7Viewer, a network traffic analysis tool, so it analyzes all the traffic between the virtual machine and the data center and the virtual machine and the external world," stated Sebastien Synold, Product Line Manager at Qosmos, in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
More and more brands have jumped on the IoT bandwagon. We have an excess of wearables – activity trackers, smartwatches, smart glasses and sneakers, and more that track seemingly endless datapoints. However, most consumers have no idea what “IoT” means. Creating more wearables that track data shouldn't be the aim of brands; delivering meaningful, tangible relevance to their users should be. We're in a period in which the IoT pendulum is still swinging. Initially, it swung toward "smart for smar...
The Internet of Things will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform and how we integrate our thinking to solve complicated problems. In his session at 19th Cloud Expo, Craig Sproule, CEO of Metavine, demonstrated how to move beyond today's coding paradigm and sh...
Rapid innovation, changing business landscapes, and new IT demands force businesses to make changes quickly. In the eyes of many, containers are at the brink of becoming a pervasive technology in enterprise IT to accelerate application delivery. In this presentation, attendees learned about the: The transformation of IT to a DevOps, microservices, and container-based architecture What are containers and how DevOps practices can operate in a container-based environment A demonstration of how ...
"Venafi has a platform that allows you to manage, centralize and automate the complete life cycle of keys and certificates within the organization," explained Gina Osmond, Sr. Field Marketing Manager at Venafi, in this SYS-CON.tv interview at DevOps at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Application transformation and DevOps practices are two sides of the same coin. Enterprises that want to capture value faster, need to deliver value faster – time value of money principle. To do that enterprises need to build cloud-native apps as microservices by empowering teams to build, ship, and run in production. In his session at @DevOpsSummit at 19th Cloud Expo, Neil Gehani, senior product manager at HPE, discussed what every business should plan for how to structure their teams to delive...
"We are a modern development application platform and we have a suite of products that allow you to application release automation, we do version control, and we do application life cycle management," explained Flint Brenton, CEO of CollabNet, in this SYS-CON.tv interview at DevOps at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
We are always online. We access our data, our finances, work, and various services on the Internet. But we live in a congested world of information in which the roads were built two decades ago. The quest for better, faster Internet routing has been around for a decade, but nobody solved this problem. We’ve seen band-aid approaches like CDNs that attack a niche's slice of static content part of the Internet, but that’s it. It does not address the dynamic services-based Internet of today. It does...
In his keynote at 18th Cloud Expo, Andrew Keys, Co-Founder of ConsenSys Enterprise, provided an overview of the evolution of the Internet and the Database and the future of their combination – the Blockchain. Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life sett...
The WebRTC Summit New York, to be held June 6-8, 2017, at the Javits Center in New York City, NY, announces that its Call for Papers is now open. Topics include all aspects of improving IT delivery by eliminating waste through automated business models leveraging cloud technologies. WebRTC Summit is co-located with 20th International Cloud Expo and @ThingsExpo. WebRTC is the future of browser-to-browser communications, and continues to make inroads into the traditional, difficult, plug-in web ...
20th Cloud Expo, taking place June 6-8, 2017, at the Javits Center in New York City, NY, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy.
WebRTC is the future of browser-to-browser communications, and continues to make inroads into the traditional, difficult, plug-in web communications world. The 6th WebRTC Summit continues our tradition of delivering the latest and greatest presentations within the world of WebRTC. Topics include voice calling, video chat, P2P file sharing, and use cases that have already leveraged the power and convenience of WebRTC.