(June 7 – 17:15 ET) – At a hearing today the Ontario Securities Commission (the “Commission”) approved a settlement agreement with Koman Info-Link Inc. Koman Investment Inc., Simon Ko and Jose Castaneda.
In the agreement entered with Koman and Ko the respondents admitted to distributing foreign exchange contracts without filing a prospectus, and trading in forex contracts without registration contrary to Ontario securities law. Koman also traded in securities listed on the Hong Kong Stock Exchange as a dealer without the required registration, and failed to maintain books and records in accordance with the requirements of Ontario securities law.
Koman accepted a total of approximately US$1.1 million and C$1.8 million from 151 investors to trade forex contracts.
Castaneda admitted that he was an account executive for some of the clients of Koman, and exercised complete discretionary trading authority for investors in respect of the forex contracts. Castaneda also admitted that he traded in forex contracts without registration contrary to Ontario securities law, and that some of the investors for whom he acted as an Account Executive suffered significant trading losses.
In approving the settlements, the OSC stated that it viewed the respondents’ conduct as very serious breaches of the Securities Act.
The OSC permanently banned Koman, Koman Investment Inc. and Ko from trading in securities. It banned Castaneda from trading in securities for five years. The OSC further ordered that Ko resign his position as the sole officer and director of Koman, and that he be prohibited from becoming or acting as a director or officer of any issuer for a period of 15 years. Castaneda agreed not to apply for registration in any capacity under the Securities Act for a period of 15 years.
-IE Staff