OSC Obtains Court Order Appointing KPMG as Receiver of Portus

TORONTO – Today the OSC obtained a court order appointing KPMG Inc. as the Receiver of all the property, undertaking and assets of Portus Alternative Asset Management Inc., Portus Asset Management Inc. and BancNote Corp. The appointment authorizes the receiver to take control of any assets and preserve any documents of the above-noted parties. KPMG is also empowered to conduct investigations as appropriate and respond to Portus’ clients’ questions and claims.

“The appointment of a receiver provides a timely and efficient process to respond to Portus investors’ questions and concerns”, said Kelley McKinnon, Manager of Litigation at the OSC. “We understand that KPMG intends to have a toll free telephone number in place early next week to answer questions.”

On February 2 and 10, 2005, the OSC issued Temporary Orders in the public interest based on conduct by Portus which appears to contravene sections 113 and 123 of Ontario Regulation 1015, R.R.O. 1990 of the Securities Act, and subsections 2.1(1) and 1.5(1)(b) of OSC Rule 31-505 and which appears to be contrary to the public interest. These orders were extended on consent to May 17, 2005.

The Temporary Orders impose terms and conditions on the registration of Portus Alternative Asset Management Inc. such that Portus is precluded from taking on new client assets and funds, opening new client accounts and paying out, redeeming or otherwise returning investment funds to clients (except with respect to pre-authorized periodic withdrawals on behalf of clients). The Temporary Orders also preclude Portus from trading in securities (again, except with respect to pre-authorized periodic withdrawals on behalf of clients) and place terms and conditions on the registration of Boaz Manor which prevent him from trading or conducting an act in furtherance of a trade in respect of the term notes invested in on behalf of Portus’ clients.

To obtain a copy of the court order, click here.

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