- Biovail Corp.'s former chief financial officer Brian Crombie must pay $300,000 in costs and is banned for eight years from serving as an officer or director of a public company, according to a settlement approved Thursday with the Ontario Securities Commission.
The agreement says Mr. Crombie has to pay an administrative penalty of $250,000 for the benefit of third parties designated by the commission.
He is also instructed to pay $50,000 for a portion of the costs of the investigation that led to the settlement.
Mr. Crombie is one of four individuals prosecuted by the OSC for events that occurred several years ago. He was CFO of the drug company from May, 2000, to August, 2004, and left the company in 2006.
Mr. Crombie is alleged to have "authorized, permitted or acquiesced" when the company violated Ontario's securities law with regards to Pharmaceutical Technologies Corp., a "special purpose entity" set up in 2001, and a "buy and hold" agreement in April, 2003, involving distribution of Wellbutrin XL tablets and an October, 2003, conference call when the antidepressant was discussed.
Biovail agreed in early January to pay $6.5-million including a record $5-million administrative penalty, in the company's settlement with the OSC. That's on top of $35.6-million (U.S.) it paid last year to civil and criminal actions brought against it by U.S. authorities.
On Jan. 27, the OSC approved settlement agreements with Ken Howling and John Miszuk, who held senior finance positions in the drug company during the relevant period.
Mr. Howling, who was in charge of investor relations, agreed to pay $20,000 (Canadian) and is prevented from being an officer or director of a public company for two years.
Mr. Miszuk, who was controller and assistant secretary of the corporation, agreed to pay $30,000 and was banned from being an officer or director of a public company for three years.
The fourth individual named in the OSC's allegations, and the only one that hasn't reached a settlement is company founder Eugene Melnyk, who is also owner of the Ottawa Senators hockey team.
Mr. Melnyk agreed last week to pay $1-million (U.S.) in a settlement of a separate matter before the U.S. Securities and Exchange Commission. That involved trading of Biovail shares done by trusts set up by Mr. Melnyk for members of his family.