OSC, RCMP investigate Royal Group over St. Kitts business deals

Royal Group Technologies has disclosed that it’s being investigated by the Ontario Securities Commission over transactions involving a St. Kitts resort development controlled by chairman Vic De Zen.

The RCMP, along with the Canada Customs and Revenue Agency, is conducting its own investigation.

Royal, a vertically integrated manufacturer of building products and housewares, has conducted $32 million in business with the St. Kitts resort over the past five years.

De Zen retired last year as Royal’s CEO, although he is still the company’s controlling shareholder.

Royal was first advised about the investigation in late December, when it formed a special committee of the board of directors, consisting solely of independent directors who have retained independent legal counsel and forensic accountants.