Temporary Order: In the Matter of Sino-Forest Corporation et al.

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

- AND -

IN THE MATTER OF
SINO-FOREST CORPORATION, ALLEN CHAN, ALBERT IP, ALFRED C.T. HUNG,
GEORGE HO AND SIMON YEUNG
TEMPORARY ORDER
(Subsections 127(7) and 127(8))

 

 

    WHEREAS on August 26, 2011, the Ontario Securities Commission (the “Commission”) issued a temporary cease trade order pursuant to subsections 127(1) and 127(5) of the Securities Act, R.S.O. 1990, c. S.5, as amended (the “Act”), subsequently varied by the Commission pursuant to an order under section 144(1) of the Act (together the “Temporary Order”), with respect to Sino-Forest Corporation (“Sino-Forest”), Allen Chan (“Chan”), Albert Ip (“Ip”), Alfred C.T. Hung (“Hung”), George Ho (“Ho”) and Simon Yeung (“Yeung”), (collectively the “Respondents”) ordering:

 

 

1) pursuant to paragraph 2 of section 127(1) of the Act that all trading in the securities of Sino-Forest shall cease (the “General Cease Trade Order”);

2) pursuant to paragraph 2 of section 127(1) of the Act that all trading in securities by Chan, Ip, Hung, Ho and Yeung shall cease (the “Individual Respondents’ Cease Trade Order”); and

3) pursuant to section 127(6) of the Act that this order shall take effect immediately and shall expire on the fifteenth day after its making unless extended by order of the Commission;

    AND WHEREAS on September 2, 2011, the Commission issued a Notice of Hearing to consider, among other things, the extension of the General Cease Trade Order and the Individual Respondents’ Cease Trade Order, to be held on September 8, 2011 at 9:30 a.m. in Hearing Room A of the Commission (the “Notice of Hearing”);

    AND WHEREAS the Notice of Hearing sets out that the Hearing is to consider whether it is in the public interest for the Commission:

1) to extend the General Cease Trade Order, pursuant to subsections 127(7) and (8) of the Act, until November 23, 2011, or until such further time as considered necessary by the Commission;

2) to extend the Individual Respondents’ Cease Trade Order, pursuant to subsections 127(7) and (8) of the Act, until January 25, 2012, or until such further time as considered necessary by the Commission; and

3) to make such further orders as the Commission considers appropriate.

    AND WHEREAS Staff of the Commission (“Staff”) have served all of the Respondents with copies of the Temporary Order and the Notice of Hearing as evidenced by the Affidavit of Anthony Long, sworn on September 7, 2011, and filed with the Commission;

    AND WHEREAS on September 8, 2011, Staff, counsel for Sino-Forest and counsel for Chan appeared before the Commission, and no one appeared for Ip, Hung, Ho and Yeung before the Commission;

    AND WHEREAS counsel for Sino-Forest has advised the Commission that Sino-Forest consents to the extension of the General Cease Trade Order until January 25, 2012;

    AND WHEREAS counsel for Chan has advised the Commission that Chan consents to the extension of the Individual Respondents’ Cease Trade Order against him until January 25, 2012;

    AND WHEREAS each of Ip, Hung, Ho and Yeung has advised Staff that they consent to the extension of the Individual Respondents’ Cease Trade Order against them until January 25, 2012;

    AND WHEREAS Staff has presented evidence of conduct that may be harmful to investors and the public interest;

    AND WHEREAS satisfactory information that the Temporary Order should not be extended has not been provided to the Commission pursuant to subsection 127(8);

    AND WHEREAS the Commission, having considered the evidence and submissions before it, is of the opinion that it is in the public interest to extend the Temporary Order;

    IT IS HEREBY ORDERED that pursuant to subsections 127(7) and (8) of the Act the Temporary Order is extended until January 25, 2012.

 

Dated at Toronto this 8^th day of September, 2011.