Jeff Kehoe, the esteemed director of enforcement on the Ontario Securities Fee (OSC), is about to depart from his pivotal position on the finish of February, concluding a outstanding seven-year tenure. Sources aware about this growth have confirmed the approaching departure, marking the top of an period for Canada’s largest securities regulator.
Throughout his tenure, Kehoe presided over important instances, securing findings of fraud in opposition to senior executives of First Leaside Group of Corporations, the true property agency. His oversight prolonged to instances involving defunct timber firm Sino-Forest Corp., mortgage firm Dwelling Capital Group Inc., and hashish firm CannTrust Holdings Inc. Kehoe was actively engaged within the ongoing case in opposition to executives of lender Bridging Finance Inc., at the moment underneath receivership.
The CannTrust case, a quasi-criminal prosecution, skilled an surprising finish with acquittals in December 2022, revealing a flaw within the regulator’s case throughout cross-examination of a key OSC witness.
Kehoe’s impactful legacy on the OSC additionally contains overseeing no-contest settlements with main banks, leading to thousands and thousands of {dollars} reimbursed to shoppers charged “extra” funding charges attributable to inadequate controls or supervision.
Along with court docket instances and the regulator’s tribunal, Kehoe’s enforcement staff produced a complete report in 2020 on the collapse of the crypto buying and selling platform QuadrigaCx. The report, describing the collapse as “an old style fraud wrapped in trendy know-how,” performed a pivotal position in shaping the OSC’s assertive stance on cryptocurrencies. This stance led to stringent measures in opposition to non-compliant crypto platforms in 2022, together with market bans and financial penalties, stopping world gamers like FTX from onboarding many purchasers in Ontario.
All through his tenure, Kehoe prioritized enhancing the OSC’s experience and instruments in knowledge analytics, aiming to deepen investigations and handle evolving challenges in capital markets and on-line harms. He performed a pivotal position in implementing Canada’s first paid whistleblower program in 2016, which has since paid out $9 million to whistleblowers, contributing to securing $48 million in financial sanctions and voluntary funds.
Maureen Jensen, who employed Kehoe in 2016, praised his willingness to take dangers on impactful instances, together with these involving Sino-Forest, mining firm Katanga, and Dwelling Capital. She underscored the significance of the Quadriga report in highlighting points with crypto exchanges, regardless of the enforcement challenges posed by the demise of the corporate’s founder and operator.
As Kehoe prepares to step down, his departure marks a notable transition for the OSC, abandoning a legacy of strategic management and impactful enforcement within the ever-evolving panorama of economic regulation. The OSC didn’t reply to requests for remark by press time.