The Ontario Securities Commission on Wednesday commenced proceedings against Michael Tibollo for his role in the Saxton matter.

Tibollo is a Toronto lawyer, who has never been registered with the commission. OSC staff alleges that as a consultant, and then the president of the Sussex Group Ltd., Tibollo participated in the illegal distributions of the Saxton securities and engaged in other conduct contrary to Ontario securities law and the public interest.

Sussex was the operating arm of Saxton and received funding through the sale of the Saxton securities.

Tibollo faces allegations that he failed to conduct the appropriate due diligence regarding the legality of the Saxton securities’ distribution. When serious securities violations were brought to his attention, he failed to curtail the impugned activity or contact the OSC.