Globe says Biovail's Melnyk pays $1-million to SEC

2009-02-04 07:15 ET -

In the News The Globe and Mail reports in its Wednesday edition that Biovail founder Eugene Melnyk has signed a $1-million (U.S.) deal to clear some of his U.S. regulatory problems. T

he Globe's Richard Blackwell writes the Securities and Exchange Commission settlement comes days away from the start of what could be a lengthy Ontario Securities Commission hearing into his activities.

Mr. Melnyk has agreed to pay a civil penalty of $1-million to settle allegations from the SEC that he misreported some of his Biovail holdings that were held in four trusts he controlled in the Cayman Islands.

The SEC alleged that he did not disclose his ownership in the trust shares when he filed reports with the regulator.

In a statement Tuesday, Mr. Melnyk said his settlement with the SEC "includes no admissions or conclusions about culpability in this matter at all."

On Monday, the OSC is to begin a hearing into allegations against Mr. Melnyk and a former Biovail chief financial officer relating to a 2003 accident involving a truck loaded with Biovail's Wellbutrin XL antidepressant pills.

Biovail, without admitting or denying wrongdoing, agreed in March to pay the SEC $10-million (U.S.) to settle legal claims against the company.

Hg