Boaz Manor, co-founder of failed financial firm, Portus Alternative Asset Management Inc., agreed to repay $8.8 million to investors on Monday in a settlement with the Ontario Securities Commission (OSC).
The OSC approved a settlement with Manor that includes an agreement to disgorge $8.8 million, which was obtained as a result of his non-compliance with securities law, that will be distributed to Portus clients through its receiver KPMG Inc., if appropriate, or otherwise used to benefit third parties as directed by the commission.
Portus came to grief back in 2005 when the firm, along with Manor, and several others, faced regulatory allegations, including charges that the firm carried out an illegal distribution, traded without registration, misrepresented the nature of its investments and the fees associated with those investments, along with disclosure and supervisory failings. The regulatory proceedings were suspended in 2006 however, while court proceedings took place in the case.
In 2010, in a criminal case, Manor pled guilty in the Superior Court of Justice to one count of transferring investor funds contrary to his obligations as a trustee, and one count of disobeying a court order by transferring those funds. He was sentenced to four years in jail on May 25, 2011.
On Monday, he settled with the OSC. In addition to the disgorgement, Manor is reprimanded, and permanently banned from trading, from registration, and from serving as a director or officer. He admitted to contravening Ontario securities law, acting contrary to the public interest, and failing in his duties as a fund manager.
In addition, the OSC also reached settlements with two other participants in the Portus saga. Former chief compliance officers, John Ogg and Michael Labanowich, who both agreed to be prohibited from acting as a director or officer of any reporting issuer for six years; to be prohibited from acting as a compliance officer; and to pay costs of $25,000.