OSC Fails To Provide A Shred Of Evidence Against AGORACOM

It is now T + 35 days since the Ontario Securities Commission announced its allegations against AGORACOM – and the OSC has yet to provide us with a shred of evidence to support those allegations. Moreover, at our first hearing on April 26, OSC staff advised they would need until June 1 to provide their full disclosure – a full 60 days.

What is even more frustrating is the fact that the OSC appears to only now be contacting a great number of our past and current clients with voluminous requests for information. It became obvious to us when we suddenly started receiving phone calls over the past 3 weeks requesting lists of documents from a couple of years ago.

WHY DID THE OSC RUSH TO ACCUSE?

If that is the case, then why did the OSC rush to announce its allegations on April 1? As a citizen of the small-cap community with an unblemished record of service over the last decade, we are now forced to sit accused of an offence with no ability to defend ourselves because the OSC has embarked on a “shoot first, ask questions later” process. Perhaps I shouldn’t be surprised by the actions of an organization that has a history of making harmful allegations that it could not later prove in court.

If the OSC knew it could not provide evidence for 60 days, then why the rush for Thursday, April 1? Why not May 1, or June 1?

IS THE OSC PR MOTIVATED?

To this end, we question the motivation of the OSC in announcing its allegations on the eve of the holiest day of the year for all Christians – Good Friday. Forget about the fact it demonstrates an enormous level of insensitivity, there is a practical concern here. Specifically, you have to ask if the OSC wanted to own the news cycle for the next few days, knowing full well we wouldn’t have time to provide the media with our side of the story prior to everybody packing it in for the Easter long weekend.

If the OSC wasn’t PR motivated, then why not release the allegations on Monday, April 5th when both of us would be on a level playing field? If you’re 60 days away from providing full disclosure, what difference does 4 days make? The fact that they did own the media cycle over that weekend probably provides the answer.

The question is not whether or not the OSC is adhering to their own rules of investigation. I’ve been told they are. Rather, the real question is how is the OSC allowed to do this? Why are they allowed to do this? It is an incredibly difficult thing to be accused of something so offensive which you know in your heart not to be true – it is exponentially worse when you are forced to sit back and wait for your accuser to take their time in providing their evidence.

SHAME

In a free and democratic society, this kind of draconian process shouldn’t be tolerated, let alone allowed. To this I say shame on the OSC for using it and shame on all of us for allowing it.

Regards,
George