Securities Law & Instruments

IN THE MATTER OF

THE SECURITIES ACT,

R.S.O. 1990, c. S.5, AS AMENDED

AND

STANKO JOSEPH GRMOVSEK AND

GIL I. CORNBLUM

 

ORDER

(sections 127 and 127.1)

WHEREAS on October 23, 2009, the Commission issued a Notice of Hearing pursuant to section 127 and 127.1 of the Securities Act, R.S.O. 1990 c. S.5 as amended (the "Act"), accompanied by the Statement of Allegations of Staff of the Commission, in relation to the Respondents, Stanko Joseph Grmovsek ("Grmovsek") and Gil I. Cornblum ("Cornblum");

AND WHEREAS the Grmovsek entered into a Settlement Agreement with Staff of the Commission ("Staff") dated October 25, 2009 (the "Settlement Agreement") in which he agreed to a settlement of the proceedings commenced by the Notice of Hearing dated October 23, 2009, subject to the approval of the Commission;

AND UPON reviewing the Settlement Agreement and Staff's Statement of Allegations, and upon reading the written submissions from Staff and upon hearing submissions from Staff and counsel for Grmovsek;

AND WHEREAS Grmovsek acknowledges that the facts set out in Part III of the Settlement Agreement constituted a breach of section 76(1) of the Act and conduct contrary to the public interest under the Act;

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 between Grmovsek and Staff is approved;

(b) pursuant to clause 2 of subsection 127(1) of the Act, Grmovsek shall cease trading in any securities permanently;

(c) pursuant to clause 2.1 of subsection 127(1) of the Act, Grmovsek shall cease acquisitions of any securities permanently;

(d) pursuant to clause 3 of subsection 127(1) of the Act, any exemptions in Ontario securities law do not apply to Grmovsek permanently;

(e) pursuant to clause 8 of subsection 127(1) of the Act, Grmovsek is prohibited from becoming an officer or director of an issuer permanently;

(f) pursuant to clause 8.2 of subsection 127(1) of the Act, Grmovsek is prohibited from becoming an officer or director of a registrant permanently;

(g) pursuant to clause 8.4 of subsection 127(1) of the Act, Grmovsek is prohibited from becoming an officer or director of an investment fund manager permanently;

(h) pursuant to clause 8.5 of subsection 127(1) of the Act, Grmovsek is prohibited from becoming an registrant, investment fund manager or promoter permanently;

(i) pursuant to clause 10 of subsection 127(1) of the Act, Grmovsek shall disgorge to the Commission $750,000 obtained as a result of his non-compliance with Ontario securities law for allocation to or for the benefit of third parties;

(j) pursuant to clause 10 of subsection 127(1) of the Act, Grmovsek shall disgorge to the Commission $283,000 obtained as a result of his non-compliance with Ontario securities law for allocation to or for the benefit of the Attorney General for Ontario; and

(k) pursuant to subsection 127.1(1) of the Act, Grmovsek, agrees to pay costs of the investigation in the amount of $250,000 to the Commission.

Dated this 26th day of October, 2009.

"Patrick J. LeSage"