Spork Fined, Ordered To Pay C$7.75 Million In 'Non-Criminal Fraud' Case

Jun 4 2012 | 2:09pm ET

Prominent Canadian hedge fund manager Otto Spork was ordered to pay nearly C$8 million for allegedly inflating his Sextant Capital Management funds' returns and overcharging investors.

The Ontario Securities Commission today imposed "sanctions that reflect the seriousness of the securities law violations that occurred in this matter." They include C$6.75 million in disgorgement and a C$1 million fine.

The OSC last year found Spork guilty of "non-criminal fraud." The regulator said that he inflated the value of the Sextant Strategic Opportunities fund and two offshore hedge funds by investing in a pair of private companies with rights to develop Icelandic glaciers. The OSC added that 95% of the hedge fund’s assets are invested in the companies, which are themselves almost totally owned by Spork and the Sextant funds.

Spork's daughter, Natalie, a Sextant director, was ordered to pay C$190,000, and former Sextant executive Dino Ekonomidis was ordered to pay C$500,000.


In Depth

Humble in Hofstra...One Debate an Election Can Make

Sep 26 2016 | 10:20am ET

Tonight's U.S. Presidential debate, infamously coined the “Humbling in Hofstra...

Lifestyle

Vortic: Reimagining the Custom Wristwatch

Sep 27 2016 | 7:24pm ET

American watch manufacturer Vortic, which started out restoring antique pocket watch...

Guest Contributor

Hedge Fund Marketing – Tips for Your Initial Sales Meeting

Sep 29 2016 | 5:46pm ET

There are two main goals a hedge fund should have for an initial in-person sales...