The Ontario Securities Commission has approved a settlement agreement reached with Allan Eizenga, in which Eizenga agreed that he controlled and made all key business decisions relating to The Saxton Group, a group of companies which raised approximately $37 million dollars from Ontario investors in an illegal distribution of securities.

In the course of promoting and selling shares in The Saxton Group’s various companies, Eizenga made a number of untrue statements to investors and prospective investors regarding the rate of return and risk of investing in Saxton shares.

Eizenga caused the Saxton Group to issue quarterly account statements to investors that did not reflect the true value of their investment. Eizenga continued to solicit investors and distribute Saxton shares even after being advised that the distribution was likely illegal and after he was aware that the Saxton Group could not properly account for all of the investor funds raised to that point.

In approving the settlement agreement, the OSC made an order prohibiting him from acting as an officer or director of any issuer in Ontario for 25 years, and requiring him to cease trading in securities, with some limited exceptions, for a period of 22 years.

Eizenga has agreed to never re-apply for registration under Ontario securities law or under any other Canadian securities legislation.

In approving the settlement agreement, Commissioner David Knight commented on the “egregious” nature of Eizenga’s conduct and the losses inflicted on Saxton’s investors.

As a result of the settlement, the hearing into allegations against Michael Tibollo regarding his involvement in the Saxton Group has been adjourned to Wednesday, August 31.