Source: The Canadian Press
The Ontario Securities Commission has ordered the two principal managers of Norshield Asset Management to pay $4.3 million in fines for misleading investors.
Former CEO John Xanthoudakis and former president Dale Smith must pay more than $2 million each for artificially inflating the value of their funds, playing favourites with their investors and being unable to account for investors’ funds.
Norshield lost most of the $159 million invested by its 1,900 Canadian retail investors when it collapsed in 2005.
The Ontario regulator says in its ruling that investors were “consistently and continually” treated unfairly by the fund’s managers for several years.
Although it doesn’t appear that Xanthoudakis and Smith benefited financially from their conduct, the OSC says the breach was serious enough to warrant the large fine.
Both men are also banned for life from trading securities and from acting as a director or officer of any registered company.
Norshield execs fined $4.3 million for misleading investors about fund’s value
OSC orders lifetime trading ban for Xanthoudakis and Smith
- By: Canadian Press
- August 9, 2010 August 9, 2010
- 19:00