TORONTO, Aug. 1, 2012 /CNW/ - A panel of the Ontario Securities Commission (OSC) today released its reasons and decision on sanctions and costs against Lyndz Pharmaceuticals Inc., James Marketing Ltd., Michael Eatch and Rickey McKenzie ("the Respondents").
In its earlier decision on the merits, the OSC panel found that the Respondents engaged in an illegal distribution and perpetrated a fraud on Lyndz investors. Between 1999 and 2008, approximately $2.1 million was raised from the sale of Lyndz securities to investors in Ontario, other Canadian provinces and the United Kingdom.
In their decision on sanctions and costs, the OSC panel found that the Respondents "cannot be safely trusted to participate in the capital markets in any way" and accordingly ordered permanent market prohibitions against all the Respondents. In addition, the OSC panel ordered that:
- Lyndz disgorge to the Commission the amount of $400,000;
- Lyndz and James Marketing disgorge to the Commission on a joint and several basis the amount of $345,000;
- Eatch, Lyndz and James Marketing disgorge to the Commission on a joint and several basis the amount of $655,000;
- McKenzie, Lyndz and James Marketing disgorge to the Commission on a joint and several basis the amount of $700,000;
- Eatch pay an administrative penalty in the amount of $500,000; and
- McKenzie pay an administrative penalty in the amount of $600,000.
A copy of the Reasons and Decision on Sanctions in this matter is 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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