This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

OSC Panel Finds Crown Hill Capital Corporation And Wayne Lawrence Pushka Breached Fiduciary Duty

TORONTO, Aug. 26, 2013 /CNW/ - In a decision released today, an Ontario Securities Commission (OSC) panel found that Crown Hill Capital Corporation (CHCC) and Wayne Lawrence Pushka (Pushka) breached their fiduciary duty as set out in the Ontario Securities Act, in connection with several transactions.

In its decision, the Panel held that CHCC, as investment fund manager, and Pushka, as the directing mind and sole shareholder of CHCC, committed multiple breaches of their fiduciary duty to Crown Hill Fund (CHF) and its predecessor funds under ss. 116(a) of the Securities Act, and that they acted contrary to the public interest.

The Panel found that CHCC acted in bad faith and contrary to the best interests of predecessor funds of CHF in making amendments to one fund's declaration of trust and in making changes to the rights of the unitholders of another fund by means of a merger, so as to increase CHCC's powers and the management fees payable to it.

The Panel also found that CHCC acted in bad faith and contrary to the best interests of CHF in two transactions, which used the assets of CHF to substantially benefit CHCC, and ultimately Pushka, through increased management fees.  In the first transaction, CHCC caused CHF to make a loan of 10 per cent of its assets so CHCC could acquire another fund's management rights and failed to address the conflicts of interest involved.  In the second transaction, CHCC caused CHF to use more than 60 per cent of its assets to acquire indirectly management rights to the Citadel Funds.  The Panel found that the acquisition breached CHF's investment strategy and created substantial risks for CHF while benefits to its unitholders were "marginal".

The Panel found that Pushka "orchestrated" the various events and transactions and "manipulated them to obtain his intended outcomes...."  The Panel found that Pushka "misled" the independent directors of CHCC's Board of Directors and the members of the Independent Review Committee at times and, in any event, failed to make full disclosure to them.  Overall, the panel found that Pushka's conduct was "appalling for a person in a fiduciary relationship with CHF (and its predecessors)."

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,979.13 +59.54 0.35%
S&P 500 1,986.51 +4.91 0.25%
NASDAQ 4,526.4820 -1.0320 -0.02%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs