Monday, 29 August 2016
Last updated 2 days ago
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.