09/09/2014 06:23 EDT | Updated 11/09/2014 05:59 EST

Ontario Securities Commission approves Gottlieb settlement in Livent case

TORONTO - The Ontario Securities Commission has banned Myron Gottlieb for life from being a director or officer of a public company for his role in the Livent fraud case.

The 1998 demise of the company behind such theatrical hits as "Phantom of the Opera" and "Ragtime" cost investors an estimated $500 million.

In a settlement with the provincial securities regulator approved Tuesday, Gottlieb was also permanently banned from being a director or officer of an investment firm and forbidden for 15 years from trading securities except for this registered retirement savings plan and registered retirement income fund.

Gottlieb was convicted with Garth Drabinsky in connection with a scheme that led to the bankruptcy of Livent Inc., which the two men co-founded.

Gottlieb was given a four-year sentence, but granted full parole last year.

The OSC had launched its case against Gottlieb and Drabinsky in 2001, but it had been on hold while the criminal case worked its way through the system.

The provincial regulator reopened its case against Gottlieb, Drabinsky and Gordon Eckstein, a former vice-president of the defunct theatre company, last year.

Eckstein pleaded guilty to fraud in 2007 and was given a conditional sentence for his role in the scheme.