(May 10 – 15:55 ET) – The Ontario Securities Commission has issued its reasons for a decision arising from the proceeding against Mikael Prydz which was heard on April 13, 2000.

It was alleged by enforcement staff that Prydz violated the terms of a settlement agreement and the resulting order of the OSC by failing to remove language from the website of his employer. In addition, Prydz failed to provide staff with a complete list of investors to give effect to his undertaking to send a letter to all investors. Prydz also sent a letter to investors which contradicted his admissions in the settlement agreement. Finally, staff alleged that Prydz’ conduct had demonstrated a complete disregard for the OSC’s process.

In its decision the OSC held that Prydz “knowingly and intentionally failed to honour the Settlement Agreement which he had entered into voluntarily in order to settle the previous proceedings”. The OSC also held that Prydz showed a disregard for the securities laws of this province and disrespect for the OSC.

In determining the appropriate sanction to be imposed against Prydz, the OSC held he “not only breached his undertakings made in the Settlement Agreement, he did so in three different respects, showing, in our view, that he considered the Settlement Agreement as no more than a means of getting rid of the settled proceedings, with no real intention of being bound by the Settlement Agreement. In our view, such conduct exacerbates the breaches of the Act admitted by Mr. Prydz in the Settlement Agreement, and shows that Mr. Prydz continues to have little regard for the securities laws of this province.”

The Commission made the following orders:

> Prydz is prohibited from trading in securities for a period of 10 years from February 8, 2005. This order is in addition to the cease trade order imposed on Prydz by the Commission on February 8, 2000 for a period of 5 years;
> Prydz shall resign all positions that he holds as a director or officer of an issuer;
> Prydz is prohibited from becoming or acting as a director or officer of any issuer during the period from the date of the Commission’s decision until February 8, 2015; and
> Prydz has been reprimanded.
-IE Staff