The Ontario Securities Commission announced Friday that it has approved a settlement agreement in the case of a hedge fund that wasn’t properly registered.
OSC staff reached a settlement with Daniel Sternberg, Parkwood GP Inc., which he controls, and Philco Consulting Inc. (of which he was also the sole director and officer), concerning allegations that, between May 2004 and June 2011, Sternberg and Philco engaged in advising without being registered; that Sternberg and Parkwood GP traded in securities without registration; and, that Sternberg and Parkwood GP also breached undertakings that they made to the OSC.
According to the settlement, Sternberg, Parkwood GP and Philco admit that they contravened Ontario securities law, and acted contrary to the public interest, by not being properly registered. However, they point out in the agreement that no investor has been harmed by their conduct, Sternberg has since pursued proper registration, and that he did not actively solicit investors for the fund after learning of concerns about his registration status from OSC compliance staff.
Under the terms of the settlement, Sternberg is cease traded for one year, reprimanded, and prohibited from registration and from acting as a director or officer of any registrant. Parkwood GP and Philco are also cease traded and banned from registration for a year. And, they are required to pay an administrative penalty of $100,000.