TORONTO, Sept. 28, 2011 /CNW/ - In a decision released today, an Ontario
Securities Commission (OSC) panel found that Coventree Inc., Geoffrey
Cornish and Dean Tai failed to meet continuous disclosure obligations
and that the conduct of Coventree, Cornish and Tai, in contravening
Ontario securities laws, was contrary to the public interest.
Staff had alleged that Coventree failed to meet its continuous
disclosure obligations by failing to disclose the decision by Dominion
Bond Rating Service Limited (DBRS) in January 2007 to change its credit
rating methodology, which resulted in a material change to Coventree's
business or operations.
Staff had also alleged that Coventree failed to meet its continuous
disclosure obligations by failing to disclose liquidity and
liquidity-related events and the risk of a market disruption in the
days leading up to the disruption in the ABCP market that occurred in
In its decision, the OSC panel found that Coventree contravened the
Securities Act by failing to forthwith issue and file a news release
disclosing the material change that occurred as a result of a news
release issued by DBRS in January 2007, and by failing to forthwith
issue and file a news release disclosing the material changes that
occurred by the close of business on August 1, 2007.
The panel also concluded that Cornish and Tai authorized, permitted or
acquiesced in Coventree's non-compliance with Ontario securities laws
and are deemed also to have not complied with Ontario securities laws.
The OSC panel dismissed Staff allegations that Coventree failed to make
full, true and plain disclosure in its prospectus by failing to
disclose the fact that DBRS had adopted more restrictive credit rating
criteria for ABCP in November 2006 and dismissed allegations that
Coventree made materially misleading statements in April 2007.
A sanctions hearing in this matter is pending.
A copy of the Reasons and Decisions of the OSC panel in respect of
Coventree Inc., Geoffrey Cornish and Dean Tai 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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