The Ontario Securities Commission has approved a settlement reached with Normand Riopelle, and rejected a settlement with Marlene Berry. Both cases involve the illegal distribution of Saxton securities.

Between 1995 and 1998, various Saxton-related companies issued securities, raising approximately $37 million from investors. In 1999, KPMG reported that the value of the Saxton assets, at its highest, was approximately $5.5 million. The OSC alleges that the distribution of the Saxton securities was contrary to Ontario securities law.

Berry was employed by Integrated Planning Services and Rick Fangeat as the office administrator. The OSC alleges that the vast majority of Integrated Planning Services’ business related to the sale of the Saxton securities and that Fangeat acted as the manager of several Saxton salespeople.

The OSC further alleges that Berry was involved in the illegal distributions of the Saxton securities by, among other things, acting as a liaison between the Saxton salespeople and Saxton’s head office and participating in the execution of subscription agreements.

The panel rejected the settlement agreement reached with Berry finding that her role in the distribution of the Saxton securities was minor. The OSC will not be proceeding further against Berry.

During the material time, Riopelle was a licensed life insurance agent. Riopelle sold $505,700 worth of the Saxton securities to 11 of his insurance clients. The OSC says he failed to conduct the appropriate due diligence respecting the nature and quality of the Saxton products and the regulatory requirements to sell such products.

Among other things, Riopelle told clients that the Saxton securities were similar in nature to an insurance segregated fund notwithstanding that the Offering Memoranda described such securities as speculative.

The panel approved the settlement agreement with Riopelle, reprimanded him, and imposed an 11-month cease trade order on him.

OSC Web site
www.osc.gov.on.ca.