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by Mike Caswell

Don Rose, one of those charged alongside Toronto's Berardino "Dino" Paolucci for the Ecoland International Inc. manipulation, has settled the case. He has agreed to disgorge any ill-gotten gains and to pay an appropriate civil penalty, with the judge to determine the amounts. He did not admit to any wrongdoing in agreeing to the sanctions.

The settlement comes as part of a case in which the U.S. Securities and Exchange Commission claimed that Mr. Rose knowingly took part in a fraudulent effort to manipulate Ecoland in 2011. The regulator accused him of participating in matched trades in support of the scheme. The SEC also said that he sold millions of shares and transferred the proceeds to nominees.

It is not clear exactly how much Mr. Rose could be ordered to pay, but the SEC previously pegged his gains from the scheme at $914,249. (All figures are in U.S. dollars.) Presumably the SEC will be seeking disgorgement of that amount. On top of that, Mr. Rose may have to pay a fine in an amount that could be as high as his gains. This would bring the total to as much as $1.82-million.

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