Thursday, 18 December 2014
Last updated 21 min ago
Dec 3 2012 | 11:18am ET
Two years in prison will not satisfy Portus Alternative Asset Management co-founder Michael Mendelsohn's debt to society.
The nearly eight year Portus saga, which featured a C$110 million fraud, a co-founder's fugitive stint in Israel, missing diamonds and two surprise guilty pleas, came to an end when the Ontario Securities Commission fined Mendelsohn C$320,000 for his role in the scam. Mendelsohn received the same amount from Portus in the three months before the OSC shut it down in early 2005.
Mendelsohn is unlikely to pay the restitution; he said in October that he could not afford to settle the case. But OSC Commissioner Edward Kerwin wrote that the regulator must "ensure that he not be permitted to retain any financial benefit from his breaches of the act and in order to send a message to the public that the commission does not permit the retention of any funds derived from the contravention of Ontario securities laws."
Mendelsohn was also barred from trading, fund management and promotion, and serving as a director or officer of a public company.
The OSC said Mendelsohn had "gone a ways down the road of remorse," but "not far enough." Still, the regulator gave him some credit for remorse, cooperation and time behind bars.
Mendelsohn pleaded guilty to fraud in 2007.
Dec 1 2014 | 10:21am ET
As 2014 winds down, Northern Trust Hedge Fund Services executives took some time to share their outlook on trends facing the industry in 2015. Read more…
Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.