Me and the OSC

I returned to Canada in 2005 and in 2009 I was approached by a couple of widowed  friends of mine about the poor performance of their portfolios. The reason they chose me is because prior to going sailing for 15 years I was one of the highest ranked financial analysts in Canada and a former director and partner of innovative Canadian  investment firms. I had as well a record of providing double digit investment returns over decades.

In  both cases the broker involved had managed, in one year, to roughly half the portfolios of these women through stuffing and churning. I reported the stock broker to the Ontario Securities Commission (OSC).

This caused extensive investigations to be opened, not into the broker’s conduct but mine. Yes, the OSC and the Investment Industry Regulatory Organization of Canada (IIROC) sent me a letter that as a result of reporting an errant stock broker I was to be investigated. This  led to a four year investigation of me while dismissing the investment advisor’s activities as acceptable, an opinion not shared by the “Ombudsman for Banking Services and Investments”, which demanded five figure reparations for the widows.

Not having advised anyone to buy or sell shares, the investigation by IIROC fell on its face and they withdrew after a year. However, the OSC soldiered on determined to find something, anything. When their investigator Larry Masci and lawyer Jonathon Feasby came up empty handed and with their superiors breathing down their necks they resorted to criminal acts.

Masci, with the aid of Feasby, drafted documents he knew to be false and then attempted  to coerce a Registrant under the Securities Act to sign them. This constituted fraud.  These false documents, they felt assured, would bring about my downfall. When Masci  could not show up for the April 2013 hearing into my activities, although requested,  Feasby claimed he was on “disability leave” although this was clearly a lie. A month earlier in February of 2013 Masci had been “dehired” probably as a result of the OSC learning of the exposure of his criminal inclinations and a reluctance to have those discussed in open court. It appears to be a major faux pas at the Commission for employees to have their criminal activities exposed. Feasby, working closely  on my lynching would have known that his hangman had been hung out to dry.

You may wonder why Feasby and Masci would resort to criminal acts. The reason is  they thought, as all perpetrators do, that they would not be found out as the secrecy  imposed by the Ontario Securities Act as to the conduct of investigations is inviolate. Yes, the Ontario Securities Commission can conduct a secret investigation of anybody in the province in complete secrecy. Regrettably, the Criminal Code of Canada trumps  the Securities Act and the criminal activities of the Commission were exposed.

The OSC spent about $300,000 of your taxpayer dollars, terminated one employee, had another hauled up in front of the Law Society of Upper Canada and lost a Commissioner all in the space of 5 years in pursuit of me. Not bad for a bunch of criminals. What did they get out of it?I warned them at the outset that I was at that time a 71 year old boulevardier with no income or assets, not even a bank account. If you are in the extortion business you would think that information discouraging. But they soldiered on and convicted me of advising the purchase and sale of securities although they could find no one that I communicated with to do that. They imposed a 15 year trading ban on me, disallowed me from acquiring securities and imposed financial penalties of half a million dollars. The only thing that they did not impose was a ban on reading the “Wall Street Journal”. Big mistake.

The joke is on them. They can’t enforce any of their penalties. But you are still out all that taxpayer money.

I meet the mob!

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Tax Tips

Your Tax Dollars at Work 

Send Your Horror Stories 

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