News & Events

News Release

Ontario Securities
Commission


20 Queen St. W.
Box 55, Suite 1900
Toronto, ON M5H 3S8
Commission des valeurs mobilières de l'Ontario
FOR IMMEDIATE RELEASE

September 28, 2011


OSC Panel Releases Decision Regarding Coventree Inc., Geoffrey Cornish and Dean Tai
Related to Breaches of Ontario Securities Act


TORONTO – In a decision released today, an Ontario Securities Commission (OSC) panel found that Coventree Inc., Geoffrey Cornish and Dean Tai failed to meet continuous disclosure obligations and that the conduct of Coventree, Cornish and Tai, in contravening Ontario securities laws, was contrary to the public interest.

Staff had alleged that Coventree failed to meet its continuous disclosure obligations by failing to disclose the decision by Dominion Bond Rating Service Limited (DBRS) in January 2007 to change its credit rating methodology, which resulted in a material change to Coventree's business or operations.

Staff had also alleged that Coventree failed to meet its continuous disclosure obligations by failing to disclose liquidity and liquidity-related events and the risk of a market disruption in the days leading up to the disruption in the ABCP market that occurred in August 2007.

In its decision, the OSC panel found that Coventree contravened the Securities Act by failing to forthwith issue and file a news release disclosing the material change that occurred as a result of a news release issued by DBRS in January 2007, and by failing to forthwith issue and file a news release disclosing the material changes that occurred by the close of business on August 1, 2007.

The panel also concluded that Cornish and Tai authorized, permitted or acquiesced in Coventree's non-compliance with Ontario securities laws and are deemed also to have not complied with Ontario securities laws.

The OSC panel dismissed Staff allegations that Coventree failed to make full, true and plain disclosure in its prospectus by failing to disclose the fact that DBRS had adopted more restrictive credit rating criteria for ABCP in November 2006 and dismissed allegations that Coventree made materially misleading statements in April 2007.

A sanctions hearing in this matter is pending.

A copy of the Reasons and Decisions of the OSC panel in respect of Coventree Inc., Geoffrey Cornish and Dean Tai are available on the OSC website at www.osc.gov.on.ca.

The mandate of the OSC is to provide protection to investors from unfair, improper or fraudulent practices and to foster fair and efficient capital markets and confidence in capital markets. Investors are urged to check the registration of any person or company offering an investment opportunity and to review the OSC’s investor materials available at www.osc.gov.on.ca.

 

 


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For Media Inquiries: media_inquiries@osc.gov.on.ca     Wendy Dey
Director, Communications & Public Affairs
416-593-8120

Carolyn Shaw-Rimmington
Manager, Public Affairs
416-593-2361

Dylan Rae
Media Relations Specialist
416-595-8934

For Investor Inquiries:     OSC Contact Centre
416-593-8314
1-877-785-1555 (Toll Free)