Canadian Securities Regulators' Enforcement Report Highlights Fraud

CALGARY, Feb. 21, 2013 /CNW/ - The Canadian Securities Administrators (CSA) today released its fifth annual Enforcement Report that outlines how securities regulators are actively working to protect investors and the integrity of Canada's capital markets. As securities fraud can cause tremendous harm to investors and Canada's capital markets, this year's report highlights the CSA's fraud enforcement efforts.

"CSA members work hard to combat securities fraud and we place particular emphasis in our enforcement work on the violations that constitute fraud," said Bill Rice, CSA Chair and CEO and Chair of the Alberta Securities Commission. "In addition to these efforts, CSA members stress that education is a valuable tool in deterring investors from becoming victims of fraud and others types of securities laws violations."

The CSA's 2012 Enforcement Report brings into focus the enforcement work done by CSA members against those who commit wrongdoing in Canada's capital markets. CSA members concluded cases against 322 individuals and companies. Concluded securities fraud cases involved 66 individuals and companies.

Key highlights of the 2012 Enforcement Report:

  • 10 (seven per cent) of the concluded cases were in the fraud category and involved 33 individuals and 33 companies.
  • 135 concluded cases involved a total of 206 individuals and 116 companies that resulted in:
    • Fines and administrative penalties of almost $37 million.
    • More than $120 million in restitution, compensation and disgorgement.
    • Jail sentences against seven individuals.
  • Concluded matters against 185 respondents following a contested hearing, 74 respondents by settlement agreement and 63 respondents by court decision.
  • 145 matters commenced against a total of 242 individuals and 146 companies.
  • 56 interim orders and asset freeze orders were issued against 87 individuals and 77 companies.

For the second year, the CSA's Enforcement Report is available in HTML format, which allows users to navigate specific sections of the report quickly and easily. The report comes out in advance of Fraud Prevention Month in March, which highlights tools and resources Canadians can use to recognize and avoid investment fraud, and lets them know they can turn to securities regulators for help. The CSA will continue to use its Twitter account to share information about the CSA and its programs, beginning with key sections of the enforcement report. People interested in investor protection or education news and programs are encouraged to follow the CSA on Twitter (@CSA_News).

The 2012 Enforcement Report is now accessible from the CSA website www.securities-administrators.ca and from the websites of various CSA members.

The CSA, the council of securities regulators of Canada's provinces and territories, co-ordinates and harmonizes regulation for the Canadian capital markets.


SOURCE: Canadian Securities Administrators

For further information:

Mark Dickey
Alberta Securities Commission
403-297-4481     

Carolyn Shaw-Rimmington
Ontario Securities Commission
416-593-2361

Sylvain Théberge
Autorité des marchés financiers
514-940-2176       

Richard Gilhooley
British Columbia Securities Commission
604-899-6713

Ainsley Cunningham
Manitoba Securities Commission
204-945-4733                                                 

Wendy Connors-Beckett
New Brunswick Securities Commission
506-643-7745 

Tanya Wiltshire
Nova Scotia Securities Commission
902-424-8586

Dean Murrison 
Financial and Consumer Affairs
Authority of Saskatchewan 
306-787-5842

Janice Callbeck
The Office of the Superintendent 
Securities, P.E.I.
902-368-6288     

Doug Connolly
Financial Services Regulation Division of
Newfoundland and Labrador
709-729-2594

Rhonda Horte
Office of the Yukon Superintendent
of Securities
867-667-5466

Louis Arki
Nunavut Securities Office
867-975-6587

Donn MacDougall
Northwest Territories Securities Office
867-920-8984


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