Administrative fines are are regularly imposed by the Ontario
Securities Commission (the OSC) in enforcement
proceedings as sanctions for violations of Ontario securities law.
Less well-known, but equally important, is the ability of the OSC
to require wrongdoers to forfeit to the Crown the ill-gotten
proceeds of unlawful activities. This post outlines the process by
which proceeds derived from securities law violations may be
forfeited to the Crown and ultimately returned to victims of
securities law breaches.
The OSC cannot on its own compel a civil forfeiture to the
Crown. That power belongs to the Attorney General of Ontario (the
AG), which is statutorily authorized under the
Civil Remedies Act, 2001 (the Act) to
commence proceedings before the Ontario Superior Court for an order
requiring a wrongdoer to forfeit property in Ontario to the Crown
in right of Ontario where the court finds that the property is the
"proceeds of unlawful activity". "Unlawful
activity"
