IN THE MATTER OF THE SECURITIES ACT,
R.S.O. 1990 c. S-5, AS AMENDED
- and –
IN THE MATTER OF EUGENE N. MELNYK, ROGER D. ROWAN,
WATT CARMICHAEL INC., HARRY J. CARMICHAEL
AND G. MICHAEL McKENNEY
(Sections 127 and 127.1)
WHEREAS on July 28, 2006 the Ontario Securities Commission (the “Commission”) issued a Notice of Hearing (the “Notice of Hearing”) and Statement of Allegations (the “Statement of Allegations”) pursuant to sections 127 and 127.1 of the Securities Act (the “Act”) in respect of the parties listed above;
AND WHEREAS Eugene N. Melnyk (“Melnyk”) has entered into a settlement agreement with Staff of the Commission dated May 16, 2007 in relation to the matters set out in the Statement of Allegations (the “Settlement Agreement”);
AND WHEREAS Melnyk has provided the Commission with a written undertaking, attached hereto as Schedule “1”;
UPON reviewing the Notice of Hearing, Statement of Allegations and Settlement Agreement, and upon hearing submissions from counsel for Melnyk and for 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, a copy of which is attached to this Order as Schedule “2”, is approved.
2. Pursuant to clause 9 of subsection 127(1) of the Act, Melnyk will pay an administrative penalty to the Commission in the amount of $750,000.00. This payment will be allocated by the Commission to or for the benefit of third parties pursuant to section 3.4(2)(b) of the Act.
3. Pursuant to clause 8 of subsection 127(1) of the Act, Melnyk is prohibited from acting as a director of Biovail for a period of one year beginning June 30, 2007.
4. Pursuant to clause 6 of subsection 127(1) of the Act, Melnyk is reprimanded.
5. Pursuant to section 127.1 of the Act, Melnyk will make a payment to the Commission in the amount of $250,000.00 representing a portion of the costs of the Commission’s investigation in relation to this proceeding.
DATED at Toronto this 18th day of May, 2007
“James E. A. Turner”
James E. A. Turner
“C. S. Perry”
Carol S. Perry
Margot C. Howard