(February 8 -14:50 ET) – The Ontario Securities Commission has approved a settlement agreement reached between OSC Enforcement staff and Mikael Prydz. The settlement relates to a Notice of Hearing andStatement of Allegations which were issued against Prydz on January 31, 2000.
Staff of the Commission alleged that Prydz sold securities to Ontario investors without being registered. In addition, the securities which were sold were not qualified by a prospectus and none of the prospectus exemptions was available for the distribution of the securities.
Staff also alleged that Prydz acted as an adviser in the category of portfolio manager without being registered with the Commission in this capacity. It was further alleged that Prydz failed to assess the suitability of investments for investors, guaranteed returns on investments and made misrepresentations to investors.
In the settlement agreement, Prydz agreed that his conduct as described above was contrary to the public interest. Prydz undertook to the Commission to: never apply for registration in any capacity; send a letter to each of the investors to inform them of his sanction; identify the status of their investments; remove any reference on the website of his current employer to his involvement in the investment industry.
The Commission issued a cease trade order agains Prydz for a period of 5 years and reprimanded him. In approving the settlement, the Commission noted that the integrity of the capital markets requires that those who sell securities and provide advice to members of the public and purport to be in that business obtain the qualifications deemed necessary to be registered to sell securities.
-IE Staff