TORONTO, Dec. 2, 2013 /CNW/ - A panel of the Ontario Securities
Commission (Commission) released today its Reasons and Decision on Sanctions and Costs in the matter of Majestic Supply Co. Inc. (Majestic), Suncastle
Developments Corporation (Suncastle), Herbert Adams (Adams), Steve
Bishop (Bishop), Mary Kricfalusi (Kricfalusi), Kevin Loman (Loman) and
CBK Enterprises Inc. (CBK).
In its Decision on the merits, released on February 21, 2013, the
Commission found that the respondents had illegally distributed
Majestic shares to approximately 134 investors.
The panel also found that Adams' deceptive representations amounted to
conduct contrary to the public interest and that Majestic, Adams and
Bishop "made representations as to the future listing of Majestic
shares on a stock exchange for the purpose of effecting trades in
Majestic shares, contrary to subsection 38(3) of the Act and contrary
to the public interest".
In today's decision, the Commission imposed orders banning Majestic and
Suncastle permanently from trading in or acquiring securities. The
Commission imposed administrative penalties against each of Majestic
and Suncastle in the amount of $200,000 and ordered Suncastle to
disgorge $1,832,682 obtained from its sale of Majestic shares.
The panel also imposed a 20 year trading ban on Adams, whom the panel
described as a "principal actor" and who, at various points, was an
officer and director in Majestic and Suncastle's operations. The
Commission also imposed a 20 year director and officer ban on Adams,
ordered him to both pay a $300,000 administrative penalty and to
disgorge $516,000 obtained pursuant to his sale of Majestic shares.
With respect to Bishop, who was also described as a "principal actor",
was Majestic's secretary and vice-president of corporate finance and
had a commission-based relationship with Adams, the Commission imposed
a 15 year trading ban, a 15 year director and officer ban and ordered
him to pay an administrative penalty in the amount of $100,000. The
Commission found that Bishop was clearly remorseful, acknowledged the
seriousness of his conduct and co-operated with Staff.
Sanctions were also imposed against Kricfalusi, a director of Suncastle,
Loman who was involved in the sale of Majestic shares and CBK, a
company that held shares as trustee on behalf of Adams and Kricfalusi.
A copy of the Reasons and Decision on the merits and the Reasons for
Decision on Sanctions and Costs are available on the OSC website at www.osc.gov.on.ca.
The mandate of the OSC is to provide protection to investors from
unfair, improper or fraudulent practices and to foster fair and
efficient capital markets and confidence in capital markets. Investors
are urged to check the registration of any person or company offering
an investment opportunity and to review the OSC's investor materials
available at www.osc.gov.on.ca
SOURCE: Ontario Securities Commission
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