Tariffs-Free Regulatory Importing?
Asad Akhtar
As indicated earlier, the program has been met with stiff criticism regarding its
effectiveness; particularly in light of its $40 million/year operating budget.137 IMET has failed
consistently in securing charges against high-profile targets and has only succeeding in
prosecuting a handful of less sophisticated fraudsters.138 Particularly damning, the acquittal of
three high-profile Nortel executives charged with fraud increased scrutiny, including by the
RCMP itself, on whether IMET is sufficiently competent in dealing with complex white-collar
crime.139 The former chairman of the BC Securities Commission has lamented the failures of
IMET being linked to its lack of expertise in the capital markets.140 At the time of his comments,
senior IMET investigators were largely comprised of RCMP officers with limited capital markets
expertise.141
Perhaps in recognition of its criticism, in April 2015, the IMET division of Toronto
relocated all of its staff to the OSC’s office. IMET declared the goal of the move was to allow
better coordination between OSC and RCMP staff in investigating financial crimes and to
provide additional support, surveillance and undercover expertise to the JSOT team.142
2. OSC Enforcement Proceedings
Under the Act, the OSC is permitted two different forums to prosecute individuals for
breaching securities law: (1) s.127 administrative proceeding before the Commission, and/or (2)
a quasi-criminal provincial prosecution in the Ontario Court of Justice (“OCJ”). While
David Banes, “Is the RCMP Integrated Market Enforcement team a dead duck?”, The Vancouver Sun (February
5, 2013) online: The Vancouver Sun .
138
Janet McFarland, “RCMP securities unit moving into OSC offices”, The Globe and Mail (March 02, 2015)
online: The Globe and Mail .
139
Douglas Quan, “Nortel acquittals prompted RCMP to question their ability to combat white collar crime”
Financial Post (May 1, 2013) online: Financial Post .
140
Janet McFarland, “IMET’s done almost nothing, so let’s start over, BCSC says” The Globe and Mail (March 14,
2009) online: The Globe and Mail .
141
Ibid.
142
Supra note 138.
137
39