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by Mike Caswell

The B.C. Securities Commission has fined Global Crossing Airlines Group Inc. and its former chairman, Mark Morabito, over the company's failure to properly disclose the termination of an aircraft leasing deal that later sent the stock down substantially. The company and Mr. Morabito have agreed that they will jointly pay $100,000 to settle the allegations. The settlement comes after Mr. Morabito and Global Crossing had complained about the "glacial pace" of the BCSC's investigation, with the events at issue going back to 2017.

The end of the case is contained in a settlement agreement that the BCSC released on Friday, Aug. 22. The $100,000 fine is the only penalty, with the regulator not imposing any bans or other sanctions. Mr. Morabito and the company will be jointly liable for the money (which the settlement describes as a voluntary payment).

The case arises from events that occurred in late 2017 and early 2018, when Global Crossing (then known as Canada Jetlines Ltd.) was attempting to establish itself as a low-cost airline. The company intended to lease two Boeing 737 aircraft, with delivery set for April, 2018, and was expecting to begin flight operations by the summer of 2018. The airline also said that it would begin ticket sales before then.

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