The Ontario Securities Commission said Tuesday it has approved the settlement between staff and Rick Fangeat, a veteran insurance agent and mutual fund salesman.

The Commission settlement hearing panel imposed a 20-year cease trade order against Fangeat and said he is prohibited from becoming or acting as an officer or a director of any issuer for 20 years.

Fangeat violated Ontario securities law during a 2.5-year period when participated in the illegal distributions of Saxton and Sussex International securities. Between 1995 and 1998, various Saxton companies issued securities, raising about $37 million from investors. The distributions of the Saxton securities did not comply with Ontario securities law, the OSC said in a release.

Between 1996 and late spring 1998, Fangeat sold at least $10 million worth of the Saxton securities to Ontario investors. Among other things, he endorsed the securities to his clients as a no-, or low-, risk investment notwithstanding that the offering memoranda described the securities as “speculative”.

The OSC said Fangeat admitted he ought to have been aware that the quarterly account statements distributed by Saxton misrepresented the value of his clients’ investments.

It said that Fangeat acted as an intermediary between Saxton and many of the Saxton salespeople. A number of the salepeople regarded Fangeat as a “mentor” given his vast experience and success in the insurance industry. In this role, he made several misrepresentations to salespeople.

In the spring of 1998, Fangeat was the president of Sussex International Ltd. Fangeat solicited investors to purchase shares in the company and executed subscription agreements as the corporation’s authorized signing officer. The distribution of the Sussex International securities did not comply with Ontario securities law.