OSC Lays Additional Charges Against Manor and New Charges Against Mendelson in the Portus Matter

For Immediate Release Before the Court OSC

News Release
Communiqué


Ontario Securities
Commission


20 Queen St. W.
Box 55, Suite 1900
Toronto, ON M5H 3S8
Commission des valeurs mobilières de l'Ontario

FOR IMMEDIATE RELEASE

April 25, 2006


OSC Lays Additional Charges Against Manor and
New Charges Against Mendelson in the Portus Matter

Toronto – The Ontario Securities Commission (OSC) laid additional charges against Boaz Manor and new charges against Michael Mendelson in the Ontario Court of Justice in the Portus matter.

On October 4, 2005, the OSC had charged Manor with misleading staff of the Commission during the investigation, unregistered trading and issuing non-exempt securities without having filed a prospectus or having obtained a receipt from the Director. The OSC laid additional charges on April 20, 2006, against Manor for failing to act fairly, honestly and in good faith with clients; and failing to meet his duties as a fund manager.

As well, on April 20, 2006, the OSC charged Mendelson with unregistered trading; issuing non-exempt securities without filing a prospectus or having obtained a receipt from the Director; failing to act fairly, honestly and in good faith with clients; and failing to meet his duties as a fund manager.

The charges filed against Boaz Manor and Michael Mendelson are listed in "Appendix A" below.

On October 5, 2005, the OSC had also launched proceedings with respect to Portus Alternative Asset Management Inc., Portus Asset Management Inc., Boaz Manor, Michael Mendelson, Michael Labanowich and John Ogg. The Notice of Hearing and Statement of Allegations in this proceeding before the OSC are available on the OSC’s website (www.osc.gov.on.ca).

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For Media Inquiries: Wendy Dey
Director, Communications and Public Affairs
416-593-8120
  Eric Pelletier
Manager, Media Relations
416-595-8913
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1-877-785-1555 (Toll Free)


APPENDIX "A"
(To the Information Respecting Charges
Against Boaz Manor and Michael Mendelson)

 

  1. On or between the 1 st day of January, 2005 and the 31 st day of March, 2005, at the City of Toronto, BOAZ MANOR did destroy material documents and submit information to the Ontario Securities Commission in a manner that at the time and in light of the circumstances was misleading, contrary to section 122(1)(a) of the Securities Act.
  2. AND FURTHER that BOAZ MANOR and MICHAEL MENDELSON between the 1 st day of January, 2003 and the 31 st day of August, 2005, at the City of Toronto and elsewhere in the Province of Ontario, did trade in securities, namely units in non-prospectus qualified mutual funds, without being registered to trade in such securities as required by section 25(1) of the Securities Act and did thereby commit an offence contrary to section 122(1)(c) of the Securities Act.
  3. AND FURTHER that BOAZ MANOR and MICHAEL MENDELSON between the 1 st day of January, 2003 and the 31 st day of August, 2005, at the City of Toronto and elsewhere in the Province of Ontario, as officers and/or directors of Portus Asset Management and/or Portus Alternative Asset Management Inc., did authorize, permit or acquiesce in the trading of securities, namely units in non-prospectus qualified mutual funds, without being registered to trade in such securities as required by section 25(1) of the Securities Act and did thereby commit an offence contrary to section 122(1)(c) of the Securities Act.
  4. AND FURTHER that BOAZ MANOR and MICHAEL MENDELSON between the 1 st day of January, 2003 and the 31 st day of August, 2005, at the City of Toronto and elsewhere in the Province of Ontario, did trade in securities, namely units in non-prospectus qualified mutual funds, where such trading was a distribution of securities without having filed a preliminary prospectus and a prospectus and obtaining receipts therefor from the Director as required by section 53(1) of the Securities Act and did thereby commit an offence contrary to section 122(1)(c) of the Securities Act.
  5. AND FURTHER that BOAZ MANOR and MICHAEL MENDELSON between the 1 st day of January, 2003 and the 31 st day of August, 2005, at the City of Toronto and elsewhere in the Province of Ontario, as officers and/or directors of Portus Asset Management and/or Portus Alternative Asset Management Inc., did authorize, permit or acquiesce in the trading of securities, namely units in non-prospectus qualified mutual funds, where such trading was a distribution of securities without having filed a preliminary prospectus and a prospectus and obtaining receipts therefor from the Director as required by section 53(1) of the Securities Act and did thereby commit an offence contrary to section 122(1)(c) of the Securities Act.
  6. AND FURTHER that BOAZ MANOR between the 1 st day of January, 2003 and the 31 st day of August, 2005, at the City of Toronto and elsewhere in the Province of Ontario, failed to discharge his duties honestly, in good faith and in the best interests of the mutual fund as required under section 116 of the Securities Act and did thereby commit an offence contrary to section 122(1)(c) of the Securities Act.
  7. AND FURTHER that BOAZ MANOR, as a registered adviser or an officer thereof, between the 1 st day of January, 2003 and the 31 st day of August, 2005, at the City of Toronto and elsewhere in the Province of Ontario, failed to deal fairly, honestly and in good faith with his clients as required by Ontario Securities Commission Rule 31-505 - Conditions of Registration, and did thereby commit an offence contrary to section 122(1)(c) of the Securities Act.
  8. AND FURTHER that MICHAEL MENDELSON between the 1 st day of January, 2003 and the 31 st day of August, 2005, at the City of Toronto and elsewhere in the Province of Ontario, failed to discharge his duties honestly, in good faith and in the best interests of the mutual fund as required under section 116 of the Securities Act and did thereby commit an offence contrary to section 122(1)(c) of the Securities Act.
  9. AND FURTHER that MICHAEL MENDELSON, as a registered adviser or an officer thereof, between the 1 st day of January, 2003 and the 31 st day of August, 2005, at the City of Toronto and elsewhere in the Province of Ontario, failed to deal fairly, honestly and in good faith with his clients as required by Ontario Securities Commission Rule 31-505 - Conditions of Registration,and did thereby commit an offence contrary to section 122(1)(c) of the Securities Act.