The Ontario Securities Commission announced four settlements reached by staff of the regulatory body and the respondents John Douglas Kirby, Michael Kennelly, Allan Dorsey and David Bending today.

The commission, chaired by Lorne Morphy Q.C., were to consider a fifth settlement, but will adjourn to a date not yet determined.

All four respondents, who were registered with the commission at the time of their actions, had sold Saxton securities to Ontario investors. None of the sales, however, were booked through their respective sponsor firms. As such, the respondents had participated in illegal distributions of securities and engaged in other conduct contrary to Ontario Securities Law.

Among other things, John Douglas Kirby had engaged in an advertising campaign directed at seniors. In so doing, Kirby misrepresented to prospective clients the nature of the Saxton investment product and is now prohibited from trading in any securities or acting as an officer or director of an issuer for the next 12 years. A written statement from Kirby promised that he would not apply for re-registration with the OSC within this time. After three years, however, he may resume trading again in his personal account.

Michael Kennelly had actively solicited clients to move money out of secure investments to purchase Saxton securities. Kennelly is prohibited from trading in any securities or acting as an officer or director of an issuer for eight years. He has been ordered to pay $2,500 in costs and after two years, he too may resume trading in his RRSP account.

The Commission reprimanded Allan Dorsey and ordered that his registration be suspended for ten months. Dorsey must successfully complete the Canadian Securities Course before his registration will be reinstated. He was also ordered to pay $1,500 in costs.

David Bending was also reprimanded and was ordered to pay $2,000. His registration has been suspended, for eight months, and he must complete the Canadian Securities Course before re-registering.