The Ontario Superior Court of Justice has dismissed an appeal of $1.2 million in monetary penalties imposed by the Ontario Securities Commission against Toronto-based wealth management firm Watt Carmichael Inc. and three of its executives.
In June 2008, the OSC released a merits decision finding serious violations of Ontario securities law and conduct contrary to the public interest by Watt Carmichael, along with president Roger Rowan, chairman and CEO Harry Carmichael and former CFO Michael McKenney.
According to the OSC, Rowan, who was a director of Biovail from 1997 to 2005, failed to file insider trading reports on trades that he conducted in the trust accounts, and failed to disclose accurate information on the Biovail shares he controlled in the accounts, among other allegations.
In addition, the OSC alleged that Watt Carmichael Inc., Carmichael and McKenney failed to adequately supervise Rowan’s trading in Biovail securities.
In a sanctions decision released in December 2009, the OSC imposed fines against the firm and executives totaling more than $1.2 million.
The firm and the executives had appealed both of these OSC decisions, including a challenge to the commission’s ability to order administrative monetary penalties.
However, on December 16, the Divisional Court dismissed the appeal on all grounds and awarded $25,000 in costs to the OSC.
IE