Settlement reached in Knowledge House case
There's a settlement in the securities case of a bank and an individual connected to the long-running Knowledge House controversy.
National Bank and its former Halifax branch manager Eric Hicks will have to pay a total of $125,000 for failing to properly supervise the trading activities of National Bank's employees in relation to Knowledge House shares.
The Nova Scotia Securities Commission said National Bank and Hicks accepted responsibility in secret, years ago, and co-operated with staff.
Shares in Knowledge House Publishing began publicly trading on the Montreal Stock Exchange in 1998 and on the Toronto Stock Exchange in 1999 after the company changed its name to Knowledge House Inc.
The Securities Commission said the violations occurred between Dec. 6, 1999 and Aug. 16, 2001.
Investors in Knowledge House lost millions when the share price collapsed. That triggered a long running string of lawsuits and allegations over who's responsible. Three people face criminal charges.
Of the settlement money, $75,000 counts as an administrative penalty, while the remaining funds will cover costs in connection to the proceedings.