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 LOUIS MICHAEL KOVACS

ORDER
(Subsections 127(1) and 127(2) and Section 127.1)



WHEREAS on September 17, 2013, the Ontario Securities Commission (the “Commission”) issued a Notice of Hearing pursuant to sections 127 and 127.1 (the “Notice of Hearing”) of the Securities Act, R.S.O. 1990, c. S.5, as amended (the “Act”) and Staff of the Commission (“Staff”) filed a statement of allegations dated September 16, 2013 (the “Statement of Allegations”) in respect of Louis Michael Kovacs (“Kovacs”);

AND WHEREAS Kovacs entered into a Settlement Agreement with Staff dated September 16, 2013 (the "Settlement Agreement") in which Kovacs and Staff agreed to a proposed settlement of the proceeding commenced by the Notice of Hearing, subject to the approval of the Commission;

AND WHEREAS the Commission has reviewed the Notice of Hearing, the Statement of Allegations and the Settlement Agreement and has heard submissions from Staff and counsel for Kovacs;

AND WHEREAS Kovacs has entered into an undertaking as part of the Settlement Agreement whereby he shall make a voluntary payment to the Commission in the amount of $15,000, which will be designated for allocation or for use by the Commission in accordance with subsection 3.4(2)(b) of the Act;

AND WHEREAS Kovacs has provided to Staff certified cheques in full payment of all monetary amounts provided and described in this Order including the above-described voluntary payment;

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

IT IS HEREBY ORDERED THAT:

(a) the Settlement Agreement is approved;

(b) pursuant to subsection 127(2) of the Act, a term and condition shall be imposed on Kovacs’ registration that all of his personal trades be pre-cleared by the Chief Compliance Officer of Harvest Portfolio Group Inc., who shall be a person other than Kovacs, for a period of one year following the date of approval of the Settlement Agreement;

(c) the voluntary payment of $15,000 made to the Commission by Kovacs, pursuant to the Settlement Agreement, is designated for allocation or use by the Commission in accordance with section 3.4(2)(b) of the Act;

(d) pursuant to paragraph 9 of subsection 127(1) of the Act, Kovacs shall pay an administrative penalty in the amount of $10,000 to the Commission which is designated for allocation or use by the Commission in accordance with section 3.4(2)(b) of the Act; and

(e) pursuant to section 127.1 of the Act, Kovacs shall pay the costs of the Commission’s investigation in the amount of $5,000.


DATED at Toronto this 19th day of September, 2013.



" Edward P. Kerwin "
Edward P. Kerwin