(November 7 – 09:25 ET) – Just as predicted, StrategicNova Funds Management Inc. accepted a settlement agreement yesterday proposed by the Ontario Securities Commission. The company, resulting from the merger of SVC O’Donnell Fund Management Inc. and Nova Bancorp Group, agreed to pay a grand total of $377,652.70 to unitholders for overstating the performance of some of its funds.

SVC O’Donnell is no longer a legal entity, therefore StrategicNova accepted the terms. SVC O’Donnell was charged with not having policy in place to value share prices, as well as not properly supervising fund manager Mark Bonham.

To compensate investors the company agreed to pay $64,519.64 to the Strategic Value Fund, $115,458.14 to the Canadian Equity Value Fund and $197,674.92 to the Dividend Fund.

StrategicNova must also make a $50,000 payment to the OSC, which will be distributed to third parties to benefit Ontario investors affected by overpricing of unit values. Another $10,000 must be paid to the OSC for costs of the investigation. All monies must be received before December 31.

The OSC is alleging that Bonham manually priced securities in three of seven funds under his management. Bonham disputes the charges and “remains convinced that the firm’s conduct was consistent at all times with regulations.” A pre-trial conference for Bonham and that of Bonham & Co Inc. is scheduled before the end of the year. He was not present Monday.