The long-running Portus saga may finally be reaching some conclusion, as the Ontario Securities Commission (OSC) says it has reached a settlement agreement with Portus founder, Boaz Manor.
The OSC said Friday that it will hold a hearing to consider a settlement with Manor, co-founder of failed hedge fund firm Portus Alternative Asset Management Inc., on August 27.
Typically, the details of regulatory settlements, including any sanctions, are only revealed if the commission approves the proposed deal. Earlier this week, the OSC also said that it will consider settlements with two other respondents in the Portus case (John Ogg and Michael Labanowich) on the same date.
The regulator brought allegations of numerous breaches of securities law against Portus and several individuals, including Manor, back in 2005. OSC staff alleged that Portus, under the direction of Manor, carried out an illegal distribution, traded without registration; misrepresented the nature of its investments and the fees associated with those investments. It also alleged disclosure failings, supervisory failings; that Manor “failed to deal fairly, honestly and in good faith with clients”; and that he misled OSC staff during its investigation.
Those allegations have not been proven, and regulatory proceedings were adjourned in 2006 while court proceedings in the case played out. Last year, Manor received a four year jail sentence for his role in the firm’s collapse.