March 6, 2019

Filing Type:

Trustee: Farber

Applicant: OSC

Applicant Counsel: Gowling WLG

Industry:

Province:

York Rio Resources and Brilliante Brasilcan Resources, two Ontario-based corporations, had all of its funds placed in receivership on March 6 on application by the OSC. These funds, which are worth approximately $5.2MM, were recovered by the OSC relating to investment schemes by the two companies. Between May 2004 and October 2008, various companies were found to have violated the Ontario Securities Act in raising about $180.0MM from investors. Other than two respondents who entered into approved settlement agreements, the OSC concluded that the remaining companies had violated the Act by, amongst other things, (1) trading in securities without registration and filing a prospectus; and (2) engaging in a course of conduct they knew or ought to have known would perpetrate a fraud on investors. In a sanctions decision released in 2014, an OSC panel ordered that the companies fully disgorge certain amounts, some on a joint and several basis with York Rio and Brilliante. The OSC now wishes to proportionally distribute the proceeds to investors in York Rio and Brilliante securities. Farber was appointed receiver. Counsel is Gowling WLG for the OSC.

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