OSC lays more charges in Portus probe

The OSC has laid additional charges against the two men at the centre of the Portus investigation — Boaz Manor and Michael Mendelson.

On April 20, the regulator charged Manor with failing to act fairly, honestly and in good faith with clients; and failing to meet his duties as a fund manager. He was previous charged, in October 2005, with misleading OSC staff during the investigation, unregistered trading and issuing non-exempt securities without filing a prospectus or having obtained a receipt from the commission.

Mendelson has now been charged with unregistered trading, issuing non-exempt securities without filing a prospectus or having obtained a receipt from the Director, failing to act fairly, honestly and in good faith with clients and failing to meet his duties as a fund manager.

The OSC commenced its proceedings against Portus Alternative Asset Management (PAAM) and Portus Asset Management (PAM) on October 5, 2005, naming Boaz Manor, Michael Mendelson, Michael Labanowich and John Ogg in the investigation.

Mendelson was officially listed as president and CEO of PAM. Michael Labanowich was Portus’ registered investment counsel and portfolio manager and was designated as chief compliance officer until May of 2004. Since that time, John Ogg was listed as chief compliance officer.

Manor remains in Israel, where he has been since shortly after Portus collapsed in February 2005, and is fighting extradition to Canada. The first meeting of Portus investors is scheduled for June 21.

Filed by Steven Lamb, Advisor.ca, steven.lamb@advisor.rogers.com