The Ontario Securities Commission (OSC) has ordered a permanent ban and monetary sanctions against a firm involved in securities fraud, but refused OSC staff’s bid for a $7.4 million disgorgement order.
The OSC handed down its decision on sanctions against Medra Corp., a real estate firm that it found to have traded without registration, carried out an illegal distribution, and committed securities fraud. (See Investment Executive, OSC rules real estate firm engaged in fraud, June 19, 2013.)
No one appeared for the company at either the hearing to determine whether it had violated securities laws, or the hearing to determine sanctions.
The commission granted most of the penalties sought by OSC staff in the case, including a permanent trading ban, a $400,000 monetary penalty, and almost $70,000 in costs.
However, it dismissed the request for a disgorgement order against Medra for $7.4 million. The commission declined the proposed disgorgement order, noting that in an earlier settlement with Medra’s president and CEO it had already ordered $15.5 million in disgorgement, which covered the same activity.
“I prefer not to make another disgorgement order, this time against Medra, with respect to the same amount obtained as a result of the same non-compliance by the parties,” the commission said in its decision, adding that there’s no reason to treat the firm and its CEO as separate entities that warrant separate disgorgement orders.
“In this case, I find that the amounts obtained by Medra through its non-compliance have been accounted for in the disgorgement amount ordered [in the settlement],” it said.