Lawyers for Ontario's securities regulator said today in their closing statements that Garth Drabinsky, who defrauded investors of an estimated $500-million, should not be allowed to participate in the capital markets.
Pamela Foy, senior litigation counsel with the Ontario Securities Commission, says the capital markets are not the place for second chances and the commission cannot allow Drabinsky to be in a position where he could do more damage.
Drabinsky was sentenced to a five-year prison term for his role in the Livent Entertainment fraud scandal that occurred nearly two decades ago. The OSC is seeking to ban him from acting as a director or officer of a public company and acting as or becoming a registrant in Ontario.
Drabinsky is seeking some exemptions, including being able to open a registered retirement savings plan and trade securities within the account.
The OSC's lawyers have argued these carve outs are unnecessary and it's impossible to predict whether they have any weaknesses that Drabinsky could exploit.
Drabinsky's lawyers will give their closing statements this afternoon and the OSC will issue their decision on whether to mete out any regulatory penalties at a later date.