Brian M. Levitt
Chairman of the Board
The Toronto-Dominion Bank
P.O. Box 1
Toronto-Dominion Centre
Toronto, Ontario
M5K 1A2
Dear Sir;
I
would appreciate the opportunity to meet with you regarding a matter
involving TD Waterhouse. My family was a victim of fraud and obstruction
of justice that cost us a substantial amount of money.
The
case is from 2006 and although TD Waterhouse at that time was able to
convince a tribunal at the OSC that they were not involved in the
matter, I have spent some time putting together documents and statements
(new evidence) that I believe would convince a reader that TD
Waterhouse had committed fraud and obstruction of justice. It will also
raise question to the competence and integrity of the OSC.
I
feel that you may be able to overpower me in a court room with smart
lawyers and the abuse of the "Rules of Procedure". I also believe that
the court of public opinion is another battle field in today�s internet
world. I believe that the documents becoming public will harm the
credibility of members of the OSC and IDA, not to mention your own
company. Isolation and self preservation will bring attention to the
conduct of TD Waterhouse when everyone begins trying to explain and
point fingers. I was also told that in the event TD was found committing
fraud and obstruction of justice it could
undermine investor and consumer confidence in the integrity of TD and
our financial system. I hope this does not happen because we will both
become losers.
Really
our meeting together is a last ditch attempt to see if there is an
alternative way to settle our affairs between us in a business like
manner - one on one, without media.
I�m
not looking for a battle. It�s not the point of winning or losing for
me. The injustice had destroyed my family and life. I want to put it
together to an end and move on. I cannot do that without the banks help
or alternatively my perseverance to find justice. Also the cost of
winning may not be the best investment one can make if that investment
was not necessary. I am hoping that reason will prevail and we can all
move on with our lives.
We need to establish assurances and a reasonable time line to resolve this issue.
I
have attached a copy of the facts that lead to this issue. I believe
that it was an internal error caused by procedures not being followed
within TD that were then covered up and created what I believe to be
criminal activity. I know I paid the price for what others did.
I promise you that everything I do will be legal and I have no intention to break the law.
I
would like to assure you that I believe there is a way to resolve this
matter in a way that the bank would look forward to take part in the big
picture, or I would not be contacting you.
I
look forward to hear from you by April 17 2014. In the event I do not
hear from you I will without further notice to begin posting documents
on the internet.
Kindest Regards
Richard Ochnik
History:
I
have compiled an explanation outlining facts and statements that I felt
are extremely relevant and clearly demonstrate the situation.
For simplicity and clarity I divided the case into 6 components:
1- TD Waterhouse role. (enclosed)
Regarding
TD Waterhouse it is absolutely imperative that the investigators have a
full understanding of the �Ontario Securities Act� and specifically the
difference between a trade, SWAP and private placement.
If they do not understand the Act, they will not understand the nature
of the violations significant of the play of words.TD employees
deliberately interfered in the course of justice to exonerate themselves
and the company.
LEDGEND
Statement of Facts - TD Waterhouse:
(Fraud, Perjury and Obstruction of Justice)
Summary��������������������������..���� 4
Individual Involved�����������������������..���.5
Understanding of Terms and Events ���������������...����.6
Definitions and Terms.�������������������������..6
EXAMPLE 1 (SWAP)�������������������������. 6
EXAMPLE 2 (TRADE)���������������������..���..7
Summary of Events:�����������������������..���9
OSC Investigation on TD Waterhouse��������������..����..11
OSC Investigation the Company and Richard Ochnik�������������12
The Fraud��������������������������.����13
Findings of the Commission�����������������������15
Evidence������������.����.��������������16
How the true evidence would have affected the Hearing�s conclusions������.16
Other Facts and Misleading Statements������������������..16
Request��������������������������.��.��.17
STATEMENT OF FACTS - TD WATERHOUSE
Summary:
1. During
hearings held by the OSC a key witness knowingly provided false
information under oath causing a change in the outcome of the case to
the detriment of the defendants and shareholders. TD Waterhouse did not
released all the requested documents in its possession and had
obstructed justice. As a result damages were incurred by the defendants
in excess of $20 million.
2. The
individual involved is a securities broker for TD Waterhouse, acting as
a witness for the OSC. The individual was well educated in the facts
and knew the implications that her statements would have on the
direction and outcome of the hearings.
3. The
prime function of the hearing is to make judgments. The panel was to
determine if the accused distributed securities without prospectus,
traded securities without being registered and were their actions
contrary to public interest; and to do this, the panel makes a
determination of the facts. The Ontario Securities Commission
(OSC) panel received evidence both in sworn, written affidavits and in
sworn, oral testimony in the open hearing.
4. The
swearing of an oath is so relevant and so respectful of truth in
administrative and judicial proceedings that the Parliament of Canada
prescribes a criminal sanction against falsehood in sworn testimony.
5. The Criminal Code of Canada,
Part IV, determines that such malfeasance is an offence against
justice. Part IV is entitled, "Offences against the administration of
law and justice", and its Sections 131 to 139 speak to the
issues of falsehood, untruth and prevarication under oath in judicial
proceedings.
6. A "witness" means a person who gives evidence orally
under oath or by
affidavit in a judicial proceeding, whether or not he is competent to be
a witness, and includes a child of tender years who gives evidence but
does not give it under oath, because, in the opinion of the person
presiding, the child does not understand the nature of an oath.
R.S., 1985, c. C-46, s. 118; R.S., 1985, c. 27 (1st Supp.), ss. 15, 203.Section 131(1) states:
7. ...ever one commits perjury
who, with intent to mislead, makes before a person who is authorized by
law to permit it to be made before him a false statement under oath or
solemn affirmation, by affidavit, solemn declaration or deposition or
orally, knowing that the statement is
false.
8. The Criminal Code makes no exception, and there is no Statute of Limitation as it relates to fraud.
Individual Involved:
9. The
individual involved had full knowledge of the terms and issues at hand.
She understood the implications of her actions and how they could
affect the outcome of the hearing. Her actions were calculated and
deliberate to deceive and therefore, constitute fraud.
Mrs. Hatice E. Pakdil;
D.O.B. April 7, 1975
Address: Rougr Hill, Toronto
Cell Phone: 416-
Husband: Efstathios Notidis
Son: Alexander
Education: University of Toronto, Graduated June 1998
Course of study: Economics and International Relations
Securities Education: Toronto
Dominion Banks brokerage training program, completion Sep. 1998. She
also completed her CSC, CPH, PFP, and courses in derivatives,
fundamental, options, life and Accident Insurance.
Registrant: Ontario Securities Commission Registrant since January 1999.
Work: Investment Advisor (sales person) for the TD Waterhouse . Investment Advice, a full-service brokerage arm of TD Bank.
Understanding of Terms and Events:
10. In Ontario the Ontario Securities Commission strictly regulates the sale and distribution of shares.
11. It
is absolutely important to note the clear distinction between the terms
�SWAP�, Private Placement� and �trade� in order to understand the
significant impact the terminology has on the outcome of the case.
12. The
main issue has to do with the timing of events and determining what
happened when and who would have been responsible and the application of
the Ontario Securities Act.
Definitions and Terms: (meanings as they apply to this issue)
13. SWAP:
is when a shareholder currently owns the shares in one account and
trades them with shares or money of equivalent value with his other
account. There is no beneficial change in ownership. You must own the
shares prior to a swap taking place.
14. EXAMPLE 1:
(Hatice testified that a SWAP took place)
15. If I asked my broker to do a SWAP (that would indicate that the shares already were purchased and the trade and distribution had already taken place � the brokerage has no liability) it would be a request to move the shares from one of my accounts into another one of my accounts. In this case I have two (or more) accounts with my broker. Crucial to a SWAP: there is no flows of funds or shares
needed to record and my account transaction would look like this:
Before the SWAP (SWAP):
|
Regular trading account:
|
RRSP account: |
|
Shares in 146 Company
Valued $100 |
Cash $100 |
Step 1.
Client ask the broker to perform a SWAP
16. After the SWAP:
|
Regular Trading Account:
|
RRSP Account: |
|
Cash $100 |
Shares in 146 Company.
Valued $100 |
There are no sales or distribution of securities. The beneficial owner is the same.
Transaction Completed.
17. Private Placement:
is when shares or bonds of a company are traded by one individual to
another. There is a change in the beneficial owner of the security. You
must not own the shares prior to the trade taking place or it is called
a�swap�. A trade is the facilitation of a transfer of securities from an
issuer to another individual for valuable
consideration.
18. An individual transaction is either a� trade� or a� SWAP� it can not be both.
19. Crossing of Securities: it is prohibited for a broker to act for a seller and purchaser of the same security in the same trade. (Compliance Manual 1998 section 4.23 tab. 112)
20. EXAMPLE 2 (TRADE):
(This is what evidence shows took place in this case � contrary to Hatice Pakdel�s sworn testimony)
21. In
a private placement trade there is a sale and purchase of a security
that initiates a distribution or change of ownership. In this example
four boxes will be used to show the flow accurately. In this case TD
acted for both the buyer and seller and only one broker box is needed.
22. Step 1.
In the beginning:
|
COMPANY |
TD WATERHOUSE |
INVESTOR ACCOUNT |
INVESTOR RRSP ACCOUNT |
|
Shares in 146 Company.
Valued $100 |
|
|
Cash $100 |
23. Trade process:
24. Client wishes to acquire shares of company for his RRSP.
25. The shares are the property of the company until they are paid in full.
26. The
company needs to have a licensed broker to act for the transaction.
Company establishes a 7% commission based on the share sale amount. This
case revolves around establishing when the securities were sold and by
whom. That is why Hatice claimed it was a SWAP during her testimony,
limiting her involvement and liability.
27. Step 2.
28. On
behalf of the investor, TD contacts and instructs company that they
have a purchaser for $100 in shares and to produce a share certificate
for an RRSP account. TD instructs the company what to place on the
shares for registration. - �TD Waterhouse in trust for (client name) RSP Account # xxxxx.�
29. The company produces the shares and gives them in trust to the licensed broker. The shares are the property of the company.
|
COMPANY |
TD WATERHOUSE
Holds shares in escrow |
INVESTOR ACCOUNT |
INVESTOR RRSP ACCOUNT |
|
|
Shares in 146 Company.
Valued $100 |
|
Cash $100 |
30. Step 3
31. TD places the shares into the RRSP account of the investor and pays itself by removing the cash from the investor account.
|
COMPANY |
TD WATERHOUSE |
INVESTOR ACCOUNT |
INVESTOR RRSP ACCOUNT |
|
|
Cash $100 |
|
Shares in 146 Company.
Valued $100 |
32.
The following is an open letter to a TD Bank exec and supporting evidence from public documents: