The Ontario Securities Commission (OSC) launched and concluded fewer enforcement cases in 2014, but levied much heftier monetary sanctions and stepped up its courtroom activity during the year. This trend echoes the enforcement statistics released last month by the Canadian Securities Administrators (CSA), which reported a drop in enforcement cases last year compared with 2013.

According to data released today by the OSC, the commission commenced a total of 22 proceedings in 2014, down from 27 cases in 2013. The smaller caseload involves fewer respondents, with 26 individuals facing proceedings in 2014, down from 39 in 2013; and 19 companies faced allegations last year, down from 57 in 2013.

The reported drop in proceedings commenced comes entirely in terms of cases brought before the OSC’s administrative tribunal; the regulator actually increased the number of cases it took to court to eight in 2014 (including six quasi-criminal cases and two criminal cases), from six in 2013.

In 2014, the OSC concluded proceedings against a total of 91 individuals and companies, down from 170 in 2013. The vast majority of those cases (involving 87 respondents) were concluded before the OSC’s tribunal. Two were concluded in court under provincial securities legislation and two others involved criminal proceedings.

Of the four proceedings that were concluded in court, two defendants received jail terms, the OSC notes, including one three-year sentence and one 60-day sentence.

“The collaboration between OSC staff and police, particularly in the Joint Serious Offences Team (JSOT), is producing impressive results in targeting misconduct, including convictions on criminal charges,” said Tom Atkinson, director of enforcement with the OSC. “Since its inception in May 2013, the JSOT has investigated 22 matters, executed more than 80 search warrants, brought five cases before the courts on criminal matters and [brought] another nine on quasi-criminal proceedings.”

The increased emphasis on taking serious cases to court means that the OSC also had more cases that were still before the courts at yearend. There were 12 cases before the courts at the end of 2014 (including 10 quasi-criminal cases and two criminal cases), up from nine in 2013.

The number of respondents that settled with the commission in 2014 dropped to 29 from 95 in 2013. At the same time, the number concluded in contested hearings also dropped, to 58 in 2014 from 71 in 2013. During the year, the OSC approved its first two settlements that did not involve admissions of wrongdoing, under its new no-contest settlement program.

Despite the decrease in the number of cases concluded, the commission increased the monetary penalties levied and disgorgement ordered during the year. Total monetary sanctions increased to $73.5 million in 2014 from $58.2 million in 2013. In addition, it secured $4.8 million in criminal restitution in 2014, up from zero the previous year.

Along with the drop in cases concluded, the number of protective orders secured by the commission declined year over year, to 210 in 2014 from 425 in 2013.

“The OSC has a stronger enforcement presence today because of more eyes and ears on the street, improved technological sophistication and significant alliances with police and other agencies,” said Howard Wetston, chairman and CEO of the OSC. “Through sheer hard work and dedication, OSC enforcement has become more vigorous and effective in protecting the interests of the investors and capital markets in Ontario.”