Proceedings

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IN THE MATTER OF THE SECURITIES ACT,
R.S.O. 1990, c. S.5 AS AMENDED

- AND -

IN THE MATTER OF
RICHVALE RESOURCE CORPORATION, MARVIN WINICK, HOWARD
BLUMENFELD, JOHN COLONNA, PASQUALE SCHIAVONE, and
SHAFI KHAN

- AND -

IN THE MATTER OF A SETTLEMENT AGREEMENT
BETWEEN STAFF OF THE ONTARIO SECURITIES COMMISSION
AND JOHN COLONNA

ORDER



    WHEREAS on November 10, 2010, the Commission issued a Notice of Hearing pursuant to section 127 of the Securities Act (the "Act") in respect of John Colonna (“Colonna” or the "Respondent");

    AND WHEREAS on November 10, 2010, Staff of the Commission filed a Statement of Allegations and on September 13, 2011 filed an Amended Statement of Allegations;

    AND WHEREAS the Respondent entered into a Settlement Agreement dated October 13, 2011 (the "Settlement Agreement") in relation to the matters set out in the Amended Statement of Allegations;

    AND WHEREAS the Commission issued a Notice of Hearing dated October 13, 2011, setting out that it proposed to consider the Settlement Agreement;

    UPON reviewing the Settlement Agreement, the Notice of Hearing, the Statement of Allegations, and upon considering submissions from the Respondent through their counsel and from Staff of the Commission;

    AND WHEREAS the Commission is of the opinion that it is in the public interest to make this Order;

    IT IS HEREBY ORDERED THAT:

  1. the Settlement Agreement is hereby approved;
  2. pursuant to clause 2 of subsection 127(1) of the Act, Colonna shall cease trading in any securities for a period of 20 years with the exception that immediately following full payment of the disgorgement order and administrative penalty set out herein Colonna shall be permitted to trade securities through a registrant and only for the account of his registered retirement savings plan as defined in the Income Tax Act, 1985, c.1, as amended (the "Income Tax Act");
  3. pursuant to clause 2.1 of subsection 127(1) of the Act, Colonna shall cease acquisitions of any securities for a period of 20 years, except acquisitions undertaken in connection with his registered retirement savings plan account (as defined in the Income Tax Act) and only following full payment of the disgorgement order and administrative penalty set out herein;
  4. pursuant to clause 3 of subsection 127(1) of the Act, any exemptions in Ontario securities law do not apply to Colonna for a period of 20 years, except to the extent such exemption is necessary for trades undertaken in connection with his registered retirement savings plan account (as defined in the Income Tax Act), which trades must be conducted through a registrant and only following full payment of the disgorgement order and administrative penalty set out herein;
  5. pursuant to clause 6 of subsection 127(1) of the Act, that Colonna be reprimanded;
  6. pursuant to clause 8 of subsection 127(1) of the Act, that Colonna is prohibited for a period of 20 years from becoming or acting as director or officer of any issuer;
  7. pursuant to clause 8.5 of subsection 127(1) of the Act, that Colonna is prohibited for a period of 20 years from becoming or acting as a registrant;
  8. pursuant to clause 9 of subsection 127(1) of the Act, that Colonna pay an administrative penalty in the amount of $65,000 for his non-compliance with Ontario securities law to be allocated under section 3.4(2)(b) to or for the benefit of third parties;
  9. pursuant to clause 10 of subsection 127(1) of the Act, Colonna disgorge to the Commission the amount of $20,000 to be allocated under section 3.4(2)(b) to or for the benefit of third parties; and
  10. as set out in paragraphs 8 and 9, above, Colonna shall pay a total amount of $85,000, to be allocated to or for the benefit of third parties under s. 3.4(2) of the Act; this amount shall be paid by an initial installment of $3,000 in the form of a certified cheque at the time of the settlement hearing and the remaining $82,000 shall be paid in equal quarterly installments over a period of 10 years from the date this Agreement is executed.

DATED at Toronto this 14th day of October, 2011.

 

 

" James E.A. Turner "
James E.A. Turner