(July 26 – 18:15 ET) – The Ontario Securities Commission has reached a settlement with David Singh, founder of the now-defunct securities dealer Fortune Financial Corp.
The OSC has a hearing scheduled against Singh and former Fortune salesman Paul Tindall on July 31. Today it announced that it has reached a settlement with Singh, and so it will now use the first part of the hearing to consider that settlement. Terms of the settlement will be disclosed only if the settlement is approved by the panel of commissioners.
The allegations against Singh relate to his supervision of Tindall. The OSC alleges among other things that he failed in his capacity as Fortune’s compliance officer to rein in Tindall or deal with any potential regulatory violations arising from his dealings with clients.
The hearing against Tindall will proceed once the Singh settlement has been considered. The OSC alleges that Tindall recommended unsuitable investments to clients. The OCS alleges other regulatory violations, such as not properly documenting client accounts.
Fortune is now essentially defunct, having sold all its assets to Dundee Wealth Management Inc. and surrendering its registrations in August 1999. Tindall stepped down from the firm in the summer of 1998.
The OSC says it will consider trading bans for Singh and Tindall, whether to terminate or suspend their registrations, and if they should be reprimanded.