IN THE MATTER OF THE SECURITIES ACT
R.S.O. 1990, c. S.5, AS AMENDED
IN THE MATTER OF
MAITLAND CAPITAL LTD., ALLEN GROSSMAN,
HANOUCH ULFAN, LEONARD WADDINGHAM,
RON GARNER, GORD VALDE, MARIANNE HYACINTHE,
DIANA CASSIDY, RON CATONE, STEVEN LANYS, ROGER MCKENZIE,
TOM MEZINSKI, WILLIAM ROUSE and JASON SNOW
STATEMENT OF ALLEGATIONS
OF STAFF OF THE ONTARIO SECURITIES COMMISSION
Staff of the Ontario Securities Commission (the “Commission”) make the following allegations:
1. Maitland Capital Ltd. (“Maitland”) is an Ontario corporation incorporated on November 2, 2004. Maitland is not registered in any capacity with the Commission.
2. The president and director of Maitland is Allen Grossman of Toronto, Ontario. Allen Grossman is not registered in any capacity with the Commission.
3. The secretary-treasurer of Maitland is Hanouch Ulfan. Hanouch Ulfan is not currently registered with the Commission.
4. The balance of the individual respondents were employed by or acted as agents for Maitland and acted as salespersons for Maitland shares.
5. On or about December 30, 2004, Maitland filed a form 45-103F4 – Report of Exempt Distribution (“Form F4”) with the Commission relating to the distribution of common shares of Maitland to 73 investors in British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, Nova Scotia and the Northwest Territories.
7. Since November 2004, Maitland, through its officers, directors, employees and/or agents including the individual respondents, has continued selling Maitland shares to residents of Ontario and elsewhere.
8. In selling the Maitland shares to Ontario residents, Maitland has relied upon the exemption for selling securities to accredited investors contained in OSC Rule 45-501 in circumstances where the exemption contained therein is not available.
9. The individual respondents (except Allen Grossman and Hanouch Ulfan) acted as salespersons or investor relation representatives for Maitland shares and received a 17% commission on the sale of Maitland shares which they sold.
11. Maitland and its representatives including the individual respondents made representations regarding the future value of Maitland shares and representations regarding Maitland being listed on a stock exchange with the intention of effecting trades in Maitland shares.
12. On July 22, 2005, the Saskatchewan Financial Services Commission (the “SFSC”) issued a temporary cease trade order against Maitland, Al Grossman and Steven Lanys on the basis that the respondents traded in securities of Maitland in Saskatchewan when they were not registered and when no receipt for prospectus had been issued with respect to these securities.
14. Maitland, Al Grossman and Steven Lanys are all subject to the SFSC cease trade order dated July 22, 2005.
16. On November 21, 2005, the ASC extended the ASC cease trade order and this order remains in effect.
17. Maitland, Grossman, William Rouse, Jason Snow, Ron Garner, Tom Mezinski, Ron Catone and Diana Cassidy are all currently subject to the ASC cease trade order dated November 8, 2005.
18. Maitland and its representatives including the individual respondents, have made misleading misrepresentations to investors, including representations regarding the future listing and future value of Maitland shares with the intention of effecting sales of Maitland shares contrary to s. 38 of the Securities Act and contrary to the public interest.
19. Maitland and the individual respondents are not registered with the Commission in any capacity. The respondents have traded in securities contrary to s. 25 of the Securities Act and contrary to the public interest.
20. No prospectus receipt has been issued to qualify the sale of Maitland shares contrary to s. 53 of the Securities Act and contrary to the public interest.
21. As officers and directors of Maitland, Grossman and Ulfan have authorized, permitted or acquiesced in breaches of s. 25, s. 38 and s. 53 of the Securities Act by Maitland and its representatives including the individual respondents and in doing so have engaged in conduct contrary to the public interest.
22. Such additional allegations as Staff may advise and the Commission may permit.
Dated at Toronto this 24 th day of January, 2006