Order: In the Matter QuantFX Asset Management Inc. et al. - Vadim Tstatskin
IN THE MATTER OF THE SECURITIES ACT,
R.S.O. 1990, c. S.5 AS AMENDED
- AND -
IN THE MATTER OF
QUANTFX ASSET MANAGEMENT INC., VADIM TSATSKIN,
LUCIEN SHTROMVASER and ROSTISLAV ZEMLINSKY
- AND -
IN THE MATTER OF A SETTLEMENT AGREEMENT BETWEEN STAFF OF THE
ONTARIO SECURITIES COMMISSION AND VADIM TSATSKIN
ORDER
(Section 37 and Subsection 127(1))
WHEREAS by Notice of Hearing dated November 10, 2010 and an Amended Notice of Hearing dated November 17, 2010, the Ontario Securities Commission (the “Commission”) announced that it proposed to hold a hearing, commencing on November 18, 2010, pursuant to sections 37, 127, and 127.1 of the Securities Act, R.S.O. 1990, c. S.5, as amended (the “Act”), to consider whether it is in the public interest to make orders, as specified therein, against QuantFX Asset Management Inc. (“QuantFX”) and its directors, Vadim Tsatskin (“Tsatskin”), Lucien Shtromvaser and Rostislav Zemlinsky. The Notices of Hearing were issued in connection with the allegations as set out in the Statement of Allegations of Staff of the Commission (“Staff”) dated November 10, 2010.
AND WHEREAS Tsatskin entered into a settlement agreement with Staff dated October 3 and 5, 2011 (the “Settlement Agreement”) in which Tsatskin agreed to a proposed settlement of the proceeding commenced by the Notice of Hearing dated November 10, 2010 and Amended Notice of Hearing dated November 17, 2010, subject to the approval of the Commission;
WHEREAS on October 6, 2011, the Commission issued a Notice of Hearing pursuant to sections 37 and 127 of the Act to announce that it proposed to hold a hearing to consider whether it is in the public interest to approve the Settlement Agreement entered into between Staff and Tsatskin;
AND UPON reviewing the Settlement Agreement, the Notices of Hearing, and the Statement of Allegations of Staff, and upon hearing submissions from counsel for Tsatskin and from Staff;
AND WHEREAS the Commission is of the opinion that it is in the public interest to make this order;
IT IS HEREBY ORDERED THAT:
- the Settlement Agreement is approved;
- pursuant to clause 2 of subsection 127(1) of the Act, trading in any securities by Tsatskin cease permanently;
- pursuant to clause 2.1 of subsection 127(1) of the Act, the acquisition of any securities by Tsatskin is prohibited permanently;
- pursuant to clause 3 of subsection 127(1) of the Act, any exemptions contained in Ontario securities law do not apply to Tsatskin permanently;
- pursuant to clauses 8, 8.2 and 8.4 of subsection 127(1) of the Act, Tsatskin is prohibited permanently from becoming or acting as a director or officer of any issuer, registrant, or investment fund manager;
- pursuant to clause 8.5 of subsection 127(1) of the Act, Tsatskin is prohibited permanently from becoming or acting as a registrant, as an investment fund manager or as a promoter;
- pursuant to clause 10 of subsection 127(1) of the Act, Tsatskin shall disgorge to the Commission the amount of $7,154 obtained as a result of his non-compliance with Ontario securities law, to be paid to or for the benefit of third parties designated by the Commission, pursuant to subsection 3.4(2)(b) of the Act;
- pursuant to clause 9 of subsection 127(1) of the Act, Tsatskin shall pay an administrative penalty in the amount of $15,000 for his failure to comply with Ontario securities law, to be paid to or for the benefit of third parties designated by the Commission, pursuant to subsection 3.4(2)(b) of the Act; and
- pursuant to subsection 37(1) of the Act, Tsatskin is prohibited permanently from telephoning from within Ontario to any residence within or outside Ontario for the purpose of trading in any security or any class of securities.
Mary G. Condon