A fund management firm and its CEO have been permanently banned and ordered to pay more than $3.4 million in monetary sanctions after an Ontario Securities Commission (OSC) hearing panel found that they committed various securities law violations.

In a decision dated, Feb. 12, the OSC handed down the sanctions against Juniper Fund Management Corp. (JFM), and the firm’s president, CEO and director, Roy Brown, ordering that they be permanently banned from the markets, and that they must pay a $500,000 penalty, more than $2.3 million in disgorgement, and almost $600,000 in costs.

The firm went into receivership back in 2006 after concerns about its recordkeeping were raised by the custodian of its funds.

In 2013, after a hearing, an OSC panel ruled that the respondents committed numerous violations, including: failing to keep proper books and records; inadequate disclosure; JFM acted as a mutual fund dealer without being registered; one of the funds provided prohibited loans and held prohibited investments; JFM and Brown breached their statutory duty of care; and Brown, as an officer and director of JFM, allowed the breaches to happen.

See: Juniper Fund, CEO face sanctions hearing

According to the penalty decision, Brown argued that the sanctions sought by OSC staff were “extremely severe in the circumstances and lesser sanctions would be appropriate and proportionate.” He argued for lesser penalties, citing the lack of a previous disciplinary history, their cooperation, and other mitigating factors, and said that a two year ban and much lower monetary sanctions would be more appropriate.

However, the panel ruled that a permanent ban was warranted in the case.

“An order permanently removing Brown and JFM from the capital markets, requiring disgorgement of all funds obtained in breach of Ontario securities law and requiring JFM and Brown to pay a significant administrative monetary penalty is appropriate,” the panel said. “Such an order will signal both to the respondents and to like-minded individuals who engage in similar conduct will be dealt with severely by the commission.”