An Ontario Securities Commission (OSC) panel has released its reasons for decision on sanctions and costs against Sextant Capital Management (SCM), Sextant Capital GP (SC), Otto Spork, Konstantinos Ekonomidis, and Natalie Spork (N. Spork).

On May 17, 2011, an OSC panel found Spork, SCM and SC committed fraud contrary to the Securities Act. The panel also finds one or more of the respondents breached their duties as investment fund managers, failed to deal fairly, failed to maintain proper books and records, and acted contrary to the public interest.

In its decision on sanctions and costs, the OSC panel ordered:

  • Spork must pay a disgorgement order of $6,350,000, an administrative penalty of $1,000,000 and costs of $350,000;
  • Spork is permanently prohibited from trading or acquiring any securities and is banned from becoming or acting as director or officer of any issuer, registrant or investment fund manager;
  • Ekonomidis must pay a disgorgement order of $250,000, an administrative penalty of $250,000 and costs of $65,000;
  • Ekonomidis is banned from trading or acquiring securities and from becoming or acting as director or officer of any issuer, registrant or investment fund manager for 10 years;
  • N. Spork must pay a disgorgement order of $140,000, an administrative penalty of $50,000 and costs of $20,000; and,
  • N. Spork is banned from trading or acquiring securities for three years and from becoming or acting as director or officer of any issuer, registrant or investment fund manager for five years.