OSC continues order against Sextant

Date: Tuesday, March 17, 2009
Author: Investment Executive

The Ontario Securities Commission has ordered Sextant Capital Management Inc. to continue to halt sales of its hedge fund invested in Icelandic glaciers until June 17.

On Monday, OSC staff requested an extension of the order to continue its investigation.

The OSC has an order freezing Sextant’s bank accounts.

In a statement of allegations, the OSC has accused Toronto-based Sextant and Otto Spork, its founder and former president, of a number of offences. These include self-dealing and exaggeration of asset values, notably the value of two glacier companies that were to become sources of bottled water. The OSC also says custodians for Sextant’s funds are unable to account for more than $90 million in investor assets. Spork, who once operated a dental practice in addition to his financial activities, now resides in Iceland.

Spork denies the allegations.

The hearing was adjourned to June 16.