Sunday, 23 October 2016
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Aug 8 2011 | 12:31pm ET
After five years on the shelf—and after two men were sent to prison—the regulatory investigation into collapsed hedge fund Portus Alternative Asset Management is back.
The Ontario Securities Commission resumed its administrative hearings this morning. The regulator had put the investigation on hold in 2006, a year after Portus, which managed C$800 million, collapsed; in the interim, firm founders Boaz Manor and Michael Mendelsohn were sent the prison, the latter in May, three-and-a-half years after returning to Canada after two years on the lam in Israel.
Portus, once Canada's largest hedge fund, was shuttered by regulators in March 2005. The firm–and, by extension, Manor and Mendelsohn, who was sentenced to two years in prison—misused some C$110 million in investor funds, prosecutors alleged.
The OSC can impose fines and bans from the financial industry.