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

Q&A: Sancus Capital And The Disruption Of The CLO Market

Oct 5 2017 | 6:28pm ET

Traditional collateralized loan obligation (CLO) funds in the U.S. market can offer...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Finding Success as Alternatives Converge

Oct 9 2017 | 4:00pm ET

Rising interest among institutional investors over the past several years has led...

 

From the current issue of