(July 10 – 17:30 ET) – The Ontario Securities Commission has issued a Notice of Hearing and Statement of Allegations against investment counsel portfolio manager Noram Capital Management, Inc.and Andrew Willman, Noram’s president, CEO and supervisory procedures officer. Noram’s registration is has been suspended by the OSC since Sept. 29, 1999.
Willman and Noram are alleged to have contravened the Ontario Securities Act by failing to deal fairly, honestly and in good faith with clients of Noram, over more than a seven year period. The conduct alleged includes making unsuitable investments, failing to adequately disclose the risks associated with certain investments, including leveraged investments, making misleading statements to clients regarding investments, making misleading and inaccurate representations in advertising and promotional materials, engaging in personal trading and principal trading and self-dealing.
In addition, it is alleged that Noram, breached an OSC order dated Sept. 29, 1999, which suspended its registration effective Oct.7, 1999, by failing to provide the OSC with certain financial reporting documentation.
Noram is currently suspended pursuant to this order as it has not provided the OSC with documentation establishing that it has corrected its working capital deficiency.
On Mar. 8, 2000, the British Columbia Securities Commission cancelled Noram’s registration and ordered it to pay an administrative penalty of $25,000, for failing to maintain the required level of working capital, filing misleading financial statements and filing financial statements late.
The OSC hearing will begin on August 16.
Copies of the Notice of Hearing and the Statement of Allegations are available on the OSC web site at www.osc.gov.on.ca.
-IE Staff