Proceedings

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IN THE MATTER OF THE SECURITIES ACT,
R.S.O. 1990, c. S.5 AS AMENDED

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IN THE MATTER OF
MAJESTIC SUPPLY CO. INC.,
SUNCASTLE DEVELOPMENTS CORPORATION,
HERBERT ADAMS, STEVE BISHOP,
MARY KRICFALUSI, KEVIN LOMAN AND
CBK ENTERPRISES INC.

ORDER
(Section 127)



    WHEREAS on October 20, 2010, the Ontario Securities Commission (the “Commission”) issued a Notice of Hearing pursuant to section 127 of the Securities Act, R.S.O. c. S.5, as amended, accompanied by the Statement of Allegations dated October 20, 2010 filed by Staff of the Commission (“Staff”) with respect to Majestic Supply Co. Inc. (“Majestic”), Suncastle Developments Corporation (“Suncastle”), Herbert Adams (“Adams”), Steve Bishop (“Bishop”), Mary Kricfalusi (“Kricfalusi”), Kevin Loman (“Loman”) and CBK Enterprises Inc. (“CBK”) collectively referred to as the “Respondents”;

    WHEREAS the Notice of Hearing set a hearing in this matter for November 23, 2010 at 2:30 p.m.;

    AND WHEREAS counsel for Adams and Suncastle, counsel for Kricfalusi and CBK, counsel for Loman, Rob Biegerl as former president of Majestic and Bishop on his own behalf and as the current president of Majestic, all attended the hearing;

    AND WHEREAS Staff has advised that it intends to provide disclosure electronically (the “Electronic Disclosure”) to the Respondents and/or their counsel on or before December 9, 2010;

    AND WHEREAS Staff and counsel for Adams have advised that on October 12, 2010, Adams was charged by the Halton Regional Police Service with four counts of fraud over $5,000 relating to his involvement with Majestic and Suncastle and has retained criminal counsel to represent him in the criminal proceedings;

    AND WHEREAS counsel for Adams has requested that criminal counsel for Adams be permitted to review the Electronic Disclosure for the purpose of permitting Adams to make full answer and defence in the criminal proceedings (the “Adams’ Disclosure Request”);

    AND WHEREAS Staff has advised that the Crown is expected to deliver a request for the Electronic Disclosure and that Staff will seek an order from the Commission at that time dealing with the Electronic Disclosure;

    AND WHEREAS Staff, counsel for Adams and Suncastle, counsel for Kricfalusi and CBK, counsel for Loman and Rob Biegerl on behalf of Majestic and Bishop consent to the adjournment of the hearing to January 25, 2011;

    AND WHEREAS counsel for Adams and Kricfalusi and counsel for Loman have requested disclosure of a subset of the Electronic Disclosure relating to their clients and the parties are discussing these requests (the “Particularized Disclosure Requests”);

    AND WHEREAS the parties agree that the deferral of the disposition of the Adams’ Disclosure Request and the Particularized Disclosure Requests are without prejudice to the parties to make a motion, in advance of January 25, 2011, in respect thereof;

    AND WHEREAS the Commission is of the opinion that it is in the public interest to make this Order;

    IT IS ORDERED that the hearing is adjourned to January 25, 2011 at 3:00 p.m. to set hearing dates and address, if necessary, the Adams’ Disclosure Request and the Particularized Disclosure Request and such other procedural or like matter as the parties may see fit to raise at that time;

    IT IS FURTHER ORDERED that Staff shall provide Electronic Disclosure to the Respondents by December 9, 2010; and

    IT IS FURTHER ORDERED that:

  1. the Electronic Disclosure provided by Staff shall not be used or disseminated except for the purpose of making full answer and defence to Staff’s Statement of Allegations and any appeal therefrom and shall not be used for any collateral or ulterior purpose;
  2. the Electronic Disclosure will not be copied by unrepresented respondents and will not be hard copied except for the purpose of enabling the Respondents to make full answer and defence in this proceeding; and
  3. on completion of this proceeding and any appeal, the unrepresented respondents will return to Staff the Electronic Disclosure and any and all hard copies of documents from the Electronic Disclosure made by them.

DATED at Toronto, this 23rd day of November, 2010.

 

" Carol S. Perry "
Carol S. Perry