The Ontario Securities Commission has released its reasons in its decision against Richard Theberge. At the June 22 hearing, an OSC panel approved a settlement between the commission and Theberge, despite stating that it was generally dissatisfied with the agreement.

The commissioners approved the settlement for a 120-day trading ban, with no carve-out for trading on his own account or in his RRSP. “We are not comfortable with the 120 days. If this matter were a contested hearing and not a settlement hearing we would have imposed a significantly longer period for a cease trade.”

Although, he noted that a cash contribution of $25,000 is a significant factor and it will have a significant impact on Theberge. The panel also re-stated the commission’s desire to encourage settlements. “We note that the respondent was cooperative, and although we do not put great stock in the voluntary aspect of going to the commission after the respondent found out there was an investigation going on, we do not dismiss it; and the fact that a settlement was negotiated and arrived at with cooperation, we do give weight to. That is beneficial to our securities regulatory system.”

In itÕs decision the panel made it clear that the settlement was only accepted because it does not believe that the 120 day penalty will be used as a benchmark for other cases. “So although we are uncomfortable with the short length of the cease trade, in all the circumstances of this particular case we have concluded that it would be in the public interest to approve this settlement.”