Norshield Chiefs Lose Appeals

Nov 4 2011 | 10:24am ET

The former heads of collapsed Canadian hedge fund Norshield Asset Management suffered a pair of legal setbacks this week in their battle with the Ontario Securities Commission.

John Xanthoudakis and Dale Smith, the CEO and president of Norshield, respectively, had their appeal of the OSC's administrative action against them last year rejected. The OSC said that the Ontario Superior Court of Justice found that the regulator was "careful, comprehensive and complete" and that Xanthoudakis and Smith were not denied a fair hearing.

The court also rejected a second appeal by the men accusing the OSC of bias against them.

The OSC last year permanently barred Xanthoudakis, who was arrested earlier this year for his alleged role in another fraud case, and Smith, and fined the two men more than C$2 million each.

Investors lost some C$159 million when Norshield collapsed six years ago. According to the OSC, the hedge fund promised to invest its assets in U.S. hedge funds, but actually invested in offshore funds.


In Depth

MiFID2 For U.S. Firms: Key Questions Answered

Feb 27 2017 | 4:54pm ET

The January 2018 deadline for implementation of the EU’s mammoth MiFID2 regulations...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

iCapital Network: The Trump Effect On Direct Lending

Feb 23 2017 | 4:21pm ET

The arrival of the Trump Administration has raised questions among private debt...

 

From the current issue of