The Ontario Securities Commission has banned former Livent CEO Garth Drabinksy from becoming a director or officer of a public company after the former theatre impresario was convicted of fraud.

The ruling comes more than 16 years after Drabinsky defrauded investors in Livent Entertainment of about $500-million, and eight years after he was convicted of two counts of fraud.

Drabinsky was sentenced to five years in prison for manipulating the financial statements and organizing a kickback scheme at the theatre company best known for mega-hits like “Phantom of the Opera” and “Showboat.”

“The public interest requires that we order the permanent bans requested by staff

that are designed to prevent Mr. Drabinsky from acting in a position of trust and authority for entities that may participate in the capital markets,” the OSC ruled.

The OSC will allow Drabinsky to trade securities on his own account since his misconduct had only a “limited connection to trading in securities through brokerage accounts,” said the OSC.

Drabinksy did not dispute the facts of the case, but had argued that the penalties the OSC were seeking were too harsh. The securities watchdog rejected those arguments and OSC lawyers argued that Drabinsky continued to show a lack of remorse. 

“[OSC staff asserts] the absence of more direct acknowledgements of wrongdoing show that Mr. Drabinsky has not acknowledged the seriousness of his misconduct and is still trying to reduce his level of responsibility,” reads the ruling.

Two other former Livent executives, Gordon Eckstein and Myron Gottlieb, were also found guilty of fraud in the Livent scandal. The men were later banned from serving as directors or officers of a public company under settlements reached with the OSC.