The Ontario Securities Commission (OSC) has stayed a penalty handed down by the Investment Industry Regulatory Organization of Canada (IIROC), pending a review of a disciplinary decision.
The OSC said Friday that it has stayed a penalty levied by an IIROC hearing panel against Steven Conville earlier this year, pending an appeal of the panel’s decision.
Conville was banned for six months, fined $50,000 and ordered to pay $15,000, after an IIROC panel ruled last year that he participated in a fraudulent mortgage scheme.
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According to the commission, Conville is seeking to appeal the panel’s decision against him, and IIROC has filed a cross appeal, arguing for a heavier penalty. It says that Conville sought to stay the penalty pending his appeal, and IIROC did not oppose that application, nor did OSC enforcement staff. As a result, it has stayed the sanction until the appeals are resolved.
In his request for an appeal, Conville argues that the IIROC panel proceeded on an incorrect principle, made errors of law, overlooked evidence, and was prevented from reviewing other evidence, among other things.
In its cross appeal, IIROC seeks a permanent ban on Conville, arguing that the panel erred by putting too much weight on his lack of prior disciplinary history, and not enough on his unwillingness to accept responsibility, or show remorse. It says the penalty is inadequate and doesn’t represent a sufficient deterrent.