Oil trading company Oriental Trading Corp. was fined $10 million by Canada’s Office of the Superintendent of Financial Institutions (OSFI) after it failed to report a significant increase in oil and gas trading in the past five years.
OTSI found that OTSC failed to properly disclose a $4.3 million cash settlement in 2014 and a $2.2 million cash payment in 2013.
OSCI found no evidence of any other significant transactions, including a $3.6 million cash transaction in January 2014.
OTR was the third-largest oil and natural gas trading company in Canada.
The company was fined a total of $10.2 billion by the regulator.
OSTC’s CEO was suspended in 2015 for an undisclosed amount, while the chief executive officer and chief operating officer were fired.
OTD was also fined $4 million in 2015.
A third-party auditor, EY, said the company made “unacceptable” business decisions and “made poor decisions” in 2014, but OTSE found no wrongdoing.
OTA was fined an undisclosed sum in 2015, for failing to comply with the company’s reporting requirements.
It was not the only company fined in the last year.
OTFI fined an unnamed energy company $5.3 billion in 2014.
The regulator also fined OTFB and OTFP for failing “to maintain a competitive environment” by not reporting to OSFI significant increases in trading activity during the same period.
In its annual report for 2015, OSFI found OTFE was the largest energy trading company operating in Canada, with $3 billion of revenues in 2016.