OSC Releases Decision in the Matter of
Betty Ho and K. Y. Ho
TORONTO – The Ontario Securities Commission (OSC)
issued a decision today in the matter of Betty Ho and K. Y. Ho. The allegations
of OSC staff against the respondents were dismissed by the independent panel of
In its decision, the panel stated,
“In that we have determined that it has not been established
that it was a fact at the time the Respondents disposed of the shares that ATI
would fall short of its forecasted revenue and earnings for Q3-2000, it
follows that we could not find that the Respondents had actual knowledge of
that fact. That the Respondents had such knowledge is a requirement in order
to establish a violation of subsection 76(1) of the Act ...
Accordingly, we find that the allegations in paragraph 9(c) of the Statement
of Allegations as to what the Respondents knew as a fact at the time they
disposed of the shares have not been established.”
Additionally, the panel found,
“... that the donation of shares by K. Y. Ho to the charities
were not “sales” for the purpose of subsection 76(1) of the Act.”
Michael Watson, Director of Enforcement at the OSC, said: “In the
hearing, the defence asked that the case be dismissed after the OSC’s
submission, but the panel decided against the defence as evidence had been
entered on every point.
“We would not be doing our job of enforcing the capital markets if
we only brought cases that were clear winners. The other respondents involved in
this case settled with us and admitted wrongdoing,” said Watson.
A copy of the decision is
made available on the OSC’s website at www.osc.gov.on.ca.