Ontario Court of Appeal Dismisses Application in the Brian Costello Matter

TORONTO – On Tuesday, December 7, 2004, the Ontario Court of Appeal dismissed the application by Brian Costello for leave to appeal the decision of the Divisional Court dated July 12, 2004. The Divisional Court had dismissed Mr. Costello’s appeal of the Commission’s decisions dated February 18, 2003 (on the merits) and April 29, 2003 (on sanctions), but for the issue of costs which was directed to be reconsidered by the Commission. The appeal routes available to Mr. Costello have now been exhausted.

In its decision on the merits, the Commission found that Mr. Costello had been acting as an “adviser” as defined in the Securities Act in that he was making recommendations on specific securities during his investment seminars. The Commission found that by acting as an adviser without being registered, Mr. Costello breached section 25(1)(c) of the Act. The Commission also found that Mr. Costello’s “failure to make full, complete and conspicuous disclosure” of his many conflicts of interest was contrary to the public interest.

 

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