The Ontario Securities Commission has issued a temporary cease trade order against the head of suspended securities firm First Leaside.
On Tuesday, the OSC ordered that David Charles Phillips, who was the controlling mind of Toronto-based First Leaside Group (including investment dealer, First Leaside Securities Inc., and exempt market dealer, FS Securities Inc., which were both suspended in February) cease trading immediately for 15 days.
The firms agreed to cease trading back in November 2011, and have filed for creditor protection. Phillips’ registration was suspended when the registration of the firms was suspended.
However, the OSC order indicates that he is acting as a consultant to at least two groups of investors to raise capital for First Leaside Group entities, and has been, or expects to be, compensated for that activity. It says that in so doing, he engaged in the business of trading after his registration was suspended.
It issued the immediate cease trade order Tuesday, and orders that the exemptions from securities law do not apply to Phillips, saying that the time required to conclude a hearing “could be prejudicial to the public interest”.