David De Gouveia -- ss. 127(1), 127(10)
IN THE MATTER OF THE SECURITIES ACT, R.S.O. 1990, c. S.5, AS AMENDED
AND
IN THE MATTER OF DAVID DE GOUVEIA
NOTICE OF HEARING (Subsections 127(1) and 127(10))
TAKE NOTICE THAT the Ontario Securities Commission (the "Commission") will hold a hearing pursuant to subsections 127(1) and 127(10) of the Securities Act, R.S.O. 1990, c. S.5, as amended (the "Act"), at the offices of the Commission, 20 Queen Street West, 17th Floor, commencing on March 19, 2014 at 10:00 a.m.;
TO CONSIDER whether, pursuant to paragraph 4 of subsection 127(10) of the Act, it is in the public interest for the Commission to make an order:
1. against David De Gouveia ("De Gouveia") that:
a. pursuant to paragraph 2 of subsection 127(1) of the Act, trading in any securities by De Gouveia cease until June 6, 2023; and
b. pursuant to paragraph 2.1 of subsection 127(1) of the Act, acquisition of any securities by De Gouveia be prohibited until June 6, 2023;
2. To make such other order or orders as the Commission considers appropriate.
BY REASON of the allegations set out in the Statement of Allegations of Staff of the Commission dated February 18, 2014 and by reason of an order of the Alberta Securities Commission dated June 6, 2013, and such additional allegations as counsel may advise and the Commission may permit;
AND TAKE FURTHER NOTICE that at the hearing on March 19, 2014 at 10:00 a.m., Staff will bring an application to proceed with the matter by written hearing, in accordance with Rule 11 of the Ontario Securities Commission Rules of Procedure (2012), 35 OSCB 10071 and section 5.1 of the Statutory Powers Procedure Act, R.S.O. 1990, c. S.22, as amended, and any party to the proceeding may make submissions in respect of the application to proceed by written hearing;
AND TAKE FURTHER NOTICE that any party to the proceeding may be represented by counsel if that party attends or submits evidence at the hearing;
AND TAKE FURTHER NOTICE that upon failure of any party to attend at the time and place, the hearing may proceed in the absence of the party and such party is not entitled to any further notice of the proceeding.
DATED at Toronto this 18th day of February, 2014.
IN THE MATTER OF THE SECURITIES ACT, R.S.O. 1990, c. S.5, AS AMENDED
AND
IN THE MATTER OF DAVID DE GOUVEIA
STATEMENT OF ALLEGATIONS OF STAFF OF THE ONTARIO SECURITIES COMMISSION
Staff of the Ontario Securities Commission ("Staff") allege:
I. OVERVIEW
1. David De Gouveia ("De Gouveia") is subject to an order made by the Alberta Securities Commission ("ASC") dated June 6, 2013 (the "ASC Order") that imposes sanctions, conditions, restrictions or requirements upon him.
2. In its findings on liability dated March 13, 2013, a panel of the ASC (the "ASC Panel") found that De Gouveia engaged in market manipulation.
3. Staff are seeking an inter-jurisdictional enforcement order reciprocating the ASC Order, pursuant to paragraph 4 of subsection 127(10) of the Ontario Securities Act, R.S.O. 1990, c. S.5, as amended (the "Act").
4. The conduct for which De Gouveia was sanctioned took place between 2008 and 2009 (the "Material Time").
5. During the Material Time, De Gouveia was a resident of Calgary, Alberta.
II. THE ASC PROCEEDINGS
The ASC Findings
6. In its Findings, the ASC Panel found the following:
a. De Gouveia engaged in market manipulation, contrary to section 93(a) of the Alberta Securities Act, R.S.A. 2000, c. S.4 (the "ASA"), and acted contrary to the public interest.
The ASC Order
7. The ASC Order imposed the following sanctions, conditions, restrictions or requirements upon De Gouveia:
a. pursuant to section 198(1)(b) of the ASA, De Gouveia must cease trading in or purchasing any securities or exchange contracts, for 10 years to and including 6 June 2023;
b. pursuant to section 199 of the ASA, De Gouveia must pay an administrative penalty of $75,000; and
c. pursuant to section 202 of the ASA, De Gouveia must pay $60,000 of the costs of the investigation and hearing.
III. JURISDICTION OF THE ONTARIO SECURITIES COMMISSION
8. De Gouveia is subject to an order of the ASC imposing sanctions, conditions, restrictions or requirements upon him.
9. Pursuant to paragraph 4 of subsection 127(10) of the Act, an order made by a securities regulatory authority, derivatives regulatory authority or financial regulatory authority, in any jurisdiction, that imposes sanctions, conditions, restrictions or requirements may form the basis for an order in the public interest made under subsection 127(1) of the Act.
10. Staff allege that it is in the public interest to make an order against De Gouveia.
11. Staff reserve the right to amend these allegations and to make such further and other allegations as Staff deem fit and the Commission may permit.
12. Staff request that this application be heard by way of a written hearing pursuant to Rules 2.6 and 11 of the Ontario Securities Commission Rules of Procedure.
DATED at Toronto, this 18th day of February, 2014.