Proceedings

PDF Version

PDF Version


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

- AND -

IN THE MATTER OF NEW FOUND FREEDOM FINANCIAL,
RON DEONARINE SINGH, WAYNE GERARD MARTINEZ, PAULINE LEVY,
DAVID WHIDDEN, PAUL SWABY AND ZOMPAS CONSULTING

ORDER
(Subections 127(1) and 127.1 of the Securities Act)



    WHEREAS on November 2, 2011, the Ontario Securities Commission (the “Commission”) issued a Notice of Hearing pursuant to sections 127 and 127.1 of the Securities Act, R.S.O. 1990, c. S.5, as amended (the “Act”), in connection with a Statement of Allegations filed by Staff of the Commission (“Staff”) on November 1, 2011 with respect to New Found Freedom Financial (“NFF”), Ron Deonarine Singh (“Singh”), Wayne Gerard Martinez (“Martinez”), Pauline Levy (“Levy”), David Whidden (“Whidden”), Paul Swaby (“Swaby”) and Zompas Consulting (“Zompas”);

    AND WHEREAS on July 26, 2012, the Commission approved a settlement agreement between Swaby and Zompas;

    AND WHEREAS on September 7, 2012, the Commission approved a settlement agreement between Staff and Whidden;

    AND WHEREAS the Commission found on December 17, 2012 that the respondents engaged in conduct which was contrary to sections 127 and 127.1 of the Securities Act, R.S.O. 1990, c. S.5, as amended (the “Act”) and contrary to the public interest;

    AND WHEREAS on March 13, 2013, the Commission held a hearing with respect to the sanctions and costs to be imposed in this matter;

    AND WHEREAS I find that it is in the public interest to issue this order pursuant to subsection 127(1) of the Act to make this order;

    IT IS HEREBY ORDERED THAT:

(a) against NFF, Singh and Martinez:

(i) pursuant to paragraphs 2 and 2.1 of subsection 127(1) of the Act, that NFF, Singh and Martinez cease trading in and acquiring securities permanently;

(ii) pursuant to paragraph 3 of subsection 127(1) of the Act, that any exemptions contained in Ontario securities law do not apply to NFF, Singh and Martinez permanently;

(iii) pursuant to paragraph 6 of subsection 127(1) of the Act, that Singh and Martinez be reprimanded;

(iv) pursuant to paragraphs 7, 8.1 and 8.3 of subsection 127(1) of the Act, that Singh and Martinez shall resign all positions they hold as a director or officer of any issuer, registrant or investment fund manager;

(v) pursuant to paragraphs 8, 8.2 and 8.4 of subsection 127(1) of the Act, that Singh and Martinez are permanently prohibited from becoming or acting as a director or officer of any issuer, registrant or investment fund manager;

(vi) pursuant to paragraph 8.5 of subsection 127(1) of the Act, that NFF, Singh and Martinez are permanently prohibited from becoming or acting as a registrant, investment fund manager or promoter;

(vii) pursuant to paragraph 9 of subsection 127(1) of the Act, that Singh and Martinez shall each pay an administrative penalty of $250,000, to be designated for allocation or use by the Commission pursuant to subsection 3.4(2)(b) of the Act;

(viii) pursuant to paragraph 10 of subsection 127(1) of the Act, that NFF, Singh and Martinez are jointly and severally liable to disgorge to the Commission $1,071,269 obtained as a result of their non-compliance with Ontario securities law, to be designated for allocation or use by the Commission pursuant to subsection 3.4(2)(b) of the Act; and

(ix) pursuant to section 127.1 of the Act, that NFF, Singh and Martinez shall pay on a joint and several basis $85,856 for costs incurred in the hearing of this matter;

(b) against Pauline Levy:

(i) pursuant to paragraphs 2 and 2.1 of subsection 127(1) of the Act, that Levy cease trading in and acquiring securities for a period of 5 years, with the exception that she be permitted to trade and acquire securities for the account of her registered retirement savings plan, as defined in the Income Tax Act, R.S.C. 1985, c. 1, as amended, after the administrative penalty at subparagraph (vii) and disgorgement at subparagraph (viii) ordered against her below are paid in full;

(ii) pursuant to paragraph 3 of subsection 127(1) of the Act, that any exemptions contained in Ontario securities law do not apply to Levy for a period of 5 years, except as required to trade in or acquire securities in accordance with the exception provided above;

(iii) pursuant to paragraph 6 of subsection 127(1) of the Act, that Levy be reprimanded;

(iv) pursuant to paragraphs 7, 8.1 and 8.3 of subsection 127(1) of the Act, that Levy shall resign all positions she holds as a director or officer of any issuer, registrant or investment fund manager;

(v) pursuant to paragraphs 8, 8.2 and 8.4 of subsection 127(1) of the Act, that Levy is prohibited from becoming or acting as a director or officer of any issuer, registrant or investment fund manager for a period of 5 years;

(vi) pursuant to paragraph 8.5 of subsection 127(1) of the Act, that Levy is prohibited from becoming or acting as a registrant, investment fund manager or promoter for a period of 5 years;

(vii) pursuant to paragraph 9 of subsection 127(1) of the Act, that Levy shall pay an administrative penalty of $5,000, to be designated for allocation or use by the Commission pursuant to subsection 3.4(2)(b) of the Act;

(viii) pursuant to paragraph 10 of subsection 127(1) of the Act, that Levy disgorge to the Commission $59,849 obtained as a result of her non-compliance with Ontario securities law, to be designated for allocation or use by the Commission pursuant to subsection 3.4(2)(b) of the Act; and

(ix) pursuant to section 127.1 of the Act, that Levy shall pay jointly and severally with NFF, Singh and Martinez, $5,000 for costs incurred in the hearing of this matter.


    DATED at Toronto this 26th day of June, 2013.



" James D. Carnwath "
James D. Carnwath, Q.C.