OSC issues reasons for sanctions in American Heritage case

The $750,000 administrative penalty levied against Sandy Winick is $500,000 less than the penalty sought by OSC staff

By: James Langton
January 2, 2014 December 19, 2017
09:30

The Ontario Securities Commission (OSC) is ordering an accused securities fraudster, Sandy Winick, to pay over $1 million in disgorgement and monetary penalties for violations of Ontario securities law.

Winick, who was arrested last year in Thailand, stands accused of numerous charges related to alleged securities fraud in the U.S. Those allegations have not been proven.

Last year, an OSC panel found that Winick, along with another man, Greg Curry, had violated Ontario securities law and acted contrary to the public interest. (See Investment Executive, OSC issues sanctions in American Heritage case, December 23, 2013.)

On Dec. 30, the commission handed down sanctions against Winick and Cury, including permanent trading and registration bans. It also ordered an administrative penalty of $750,000 against Winick and a $150,000 penalty to Curry. Additionally, Winick was ordered to disgorge $359,200; of which US$78,000 is jointly payable with Curry. They were also ordered to pay $50,000 for the costs of the hearing.

OSC staff sought a $1,250,000 penalty against Winick, but the panel said it found this request “to be excessive”. It noted that the total amounts raised from investors was approximately $450,000, and said the amount is “in the low range of cases involving schemes of this kind.”

“I find that an administrative penalty against Winick of $750,000 is sufficient to meet the requirements of specific and general deterrence,” it said in its decision.

OSC staff also requested a much bigger costs order of $279,350 against Winick. But, while the panel ruled that the costs request was conservative, it also noted that the bill relates to the investigation and hearing costs for three separate matters, and only one of those involves Winick and Curry.

“Therefore, I do not find it appropriate in the circumstances to order Winick to pay the total hearing costs of all three matters, given that he is a respondent in only one of the three matters,” it said.

They did not appear to face the OSC’s allegations against them, or introduce any evidence in the case.