TORONTO, June 4, 2012 /CNW/ - In a decision released today, an Ontario Securities Commission (OSC) panel released its Reasons for Decision on Sanctions and Costs against Sextant Capital Management Inc. (SCMI), Sextant Capital GP Inc. (Sextant GP), Otto Spork (Spork), Konstantinos Ekonomidis (Ekonomidis) and Natalie Spork (N. Spork).
On May 17, 2011, an OSC panel found that Spork, SCMI and Sextant GP committed fraud contrary to the Securities Act. The panel also found that the one or more of the Respondents breached their duties as investment fund managers, failed to deal fairly, honestly and in good faith, failed to maintain proper books and records and acted contrary to the public interest.
In its decision on sanctions and costs, the OSC panel ordered:
- Spork must pay a disgorgement order of $6,350,000, an administrative penalty of $1,000,000 and costs of $350,000;
- Spork is permanently prohibited from trading or acquiring any securities and is banned from becoming or acting as director or officer of any issuer, registrant or investment fund manager;
- Ekonomidis must pay a disgorgement order of $250,000, an administrative penalty of $250,000 and costs of $65,000;
- Ekonomidis is banned from trading or acquiring securities and from becoming or acting as director or officer of any issuer, registrant or investment fund manager for 10 years;
- N. Spork must pay a disgorgement order of $140,000, an administrative penalty of $50,000 and costs of $20,000; and,
- N. Spork is banned from trading or acquiring securities for three years and from becoming or acting as director or officer of any issuer, registrant or investment fund manager for five years.
A copy of the Reasons and Decision on Sanctions in this matter is available on the OSC website at www.osc.gov.on.ca. A copy of the materials relating to the Receivership can be found at: http://www.pwc.com/ca/en/car/sextant .
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
For further information:
For Media Inquiries:
Manager, Public Affairs
Media Relations Specialist
Follow us on Twitter: OSC_News
For Investor Inquiries:
OSC Contact Centre
1-877-785-1555 (Toll Free)