An Ontario court has ordered that $20,000 in security for costs must be posted to allow an appeal of an Ontario Securities Commission (OSC) decision to go ahead.
The divisional court of the Ontario Superior Court of Justice has ruled that Paola Lombardi and Jeffrey Pogachar, who are seeking to appeal an OSC decision against them, must put up $20,000 by Jan. 31, 2013.
The OSC brought a motion seeking security for the costs of the appeal, which the court has granted on the grounds that there is good reason to believe that the appeal is frivolous and vexatious; and, that the appellants don’t have any assets in Ontario.
Earlier this year, an OSC hearing panel found that Lombardi and Pogachar, former directors and officers of failed life-settlements company New Life Capital Corp., perpetrated a fraud on investors, and traded without registration.
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Among other sanctions, the OSC hearing panel ordered Lombardi and Pogachar to pay costs of $257,756; which, it says, has not been paid. Now, the pair are seeking to appeal that ruling.
In an oral decision finding the pair’s appeal to be frivolous, the divisional court notes that they failed to contest the allegations against them, and so states, “the ability to meaningfully prosecute an appeal will be limited.” Additionally, it states that the notice of appeal “is perfunctory and fails to reveal any substantial basis for an appeal.”
Moreover, the decision notes that the Lombardi and Pogachar’s assets in Ontario have been seized by a receiver, and it appears that they now live in the Bahamas.
As a result, the court has ordered that $20,000 in security for costs be posted, and that the pair pay $1,575 for the costs of the motion.