Anthony Speciale, Deng’s lawyer, countered the point
AnthonySpeciale, Deng’s lawyer, countered the point by arguing thatno investment contract was ever entered between MP and its investorswhatsoever.Forex trading was never carried out by lenders and investors, who do not sharethe risks, the profits and the losses, rather than being given a flat rate ofreturn, said Speciale.
Speciale further argued that forex activities do not fall under thejurisdiction of the securities legislation.
“It is my submission to you that it is important for you to determine whetherthis Commission’s panel has the jurisdiction to regulate the forex activities,which is the target of the cease trade order issued against my client… Theforex is a peculiar economic activity that transcends provincial andinternational boundaries,” Speciale told the panel.
And the “guaranteed corporate debentures” issued by MP global do not satisfythe legal definition of debenture under the Ontario Securities Act, accordingto Deng’s lawyer.
“A young man who left a bank in 2005 decided to take advantage of theopportunities in Canada and opened a business as a sole proprietorship andcommitted himself into the commercial world… There were some losses thatoccurred in 2008 and 2009, which was primarily brought on as a result ofeconomic activities that he carried on.
“This is not a Madoff situation, and this is not a Weizhen Tang situation.There is legitimacy in the business,” said Speciale.
The OSC investigators should have tried to mediate with MP Global, and there isno provision under the Act that prevents them from doing so, stated Speciale.
"To make a statement that my client was involved in a criminal gangactivity is probably as serious as you can get,” said Speciale, referring tosome email conversations between the OSC investigators and investors in 2009.
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