The Ontario Securities Commission is seeking to appoint a receiver and manager of “all the property and assets” of Sextant Capital Management Inc. and related entities, the regulator said Thursday.

The hedge fund company is the subject of allegations by the OSC of self-dealing and inflating returns.

Under provisions of the Securities Act, the OSC may apply to the court for an order appointing a receiver and manager “where it is in the best interests of, among others, security holders or subscribers of the company over which the receiver and manager is appointed, or where it is appropriate for the due administration of Ontario securities law.”

A hearing is scheduled for April 30.

The OSC has an order freezing Sextant’s bank accounts.

In a statement of allegations, the OSC has accused Toronto-based Sextant and Otto Spork, its founder and former president, of a number of offences. These include self-dealing and exaggeration of asset values, notably the value of two glacier companies that were to become sources of bottled water. The OSC also says custodians for Sextant’s funds are unable to account for more than $90 million in investor assets. Spork, who once operated a dental practice in addition to his financial activities, now resides in Iceland.

Spork denies the allegations.

IE