Ontario Superior Court of Justice, Divisional Court Affirms Ontario Securities Commission's Decision In The Matter Of Dimitrios Boulieris

TORONTO – In a decision released on May 11, 2005, the Ontario Superior Court of Justice, Divisional Court affirmed the Ontario Securities Commission's decision in the Matter of Dimitrios Boulieris reinforcing that a "high level of deference should be afforded to the Commission when it determines what is in the public interest, especially in relation to sanctions." In doing so, the Divisional Court also affirmed that market participants whose conduct has facilitated a market manipulation will be met with severe sanctions, including removal from the marketplace for an appropriate period of time.

The Divisional Court decision related to Boulieris' appeal of a decision of the Commission dated January 28, 2004, which set aside part of a decision of the Ontario District Council of the Investment Dealers Association relating to allegations concerning Boulieris' facilitation of a market manipulation. The Commission overturned the District Council's decision on this issue as it concluded that the District Council erred in failing to appreciate the essential business and operational elements necessary to prove that Boulieris facilitated a market manipulation. The Commission also found that the District Council had erred by imposing a penalty that was "completely unfit and inappropriate in light of [Boulieris'] facilitation of the market manipulation" and imposed a harsher sanction which included a fine of $128,504 and the suspension of Boulieris' approval for registration for a period of seven years.

In finding that the Commission's decision was reasonable, the Divisional Court quoted with approval the following excerpt from the Commission's decision:

Where a registrant has willfully facilitated a market manipulation, he should face severe consequences, including removal from the marketplace for an appropriate period and disgorgement of moneys received as a consequence of his conduct. Otherwise, confidence in the capital markets will suffer and the market will be at risk of further disreputable conduct, and harm from the registrant.

A copy of the Divisional Court decision is made available on the OSC's web site (www.osc.ca).

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