Melnyk to pay $1-million fine

The founder of the pharmaceutical company Biovail , Eugene Melnyk, has agreed to settle with the Securities and Exchange Commission.
Eugene Melnyk says he'll pay $1 million US to settle with the U.S. Securities and Exchange Commission.
Eugene Melnyk admits to no wrongdoing, but will pay a $1-million fine.

The U.S. stock watchdog alleged the founder of the Biovail pharmaceutical company violated reporting obligations related to shares held in certain trusts set up for his wife and family.

Melnyk's position was that he didn't control the shares, so shouldn't have to disclose trading in them.

Under the court-approved settlement, Melnyk doesn't admit to wrongdoing but he agrees to abide by the U.S. reporting rule in future.

In March 2008, securities regulators in Ontario and the U.S. filed charges against Biovail, Melnyk and three other current and former executives.

The Toronto-based company settled the SEC's charges without admitting or denying the allegations and paid a $10-million US penalty.

Melnyk founded Biovail and remains its largest single shareholder.

He's also owner of the Ottawa Senators hockey team and is trying to set up a professional soccer team in the national capital.