Proceedings

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

- and -

IN THE MATTER OF FRANKLIN DANNY WHITE,
NAVEED AHMAD QURESHI,
WNBC THE WORLD NETWORK BUSINESS CLUB LTD.,
MMCL MIND MANAGEMENT CONSULTING,
CAPITAL RESERVE FINANCIAL GROUP, and
CAPITAL INVESTMENTS OF AMERICA


ORDER

(Pursuant to ss. 127(1), (5) and (7))


      WHEREAS on February 7, 2008, the Ontario Securities Commission (the “Commission”) issued a Notice of Hearing and Statement of Allegations pursuant to sections 127 and 127.1 of the Securities Act, R.S.O. 1990, c. S.5, as amended (the “Act”);

      AND WHEREAS the first appearance for this matter was scheduled for Thursday, February 28, 2008 at 11:00 a.m.;

      AND WHEREAS Staff of the Commission (“Staff”) appeared at the hearing held on Thursday February 28, 2008;

      AND WHEREAS counsel for Naveed Ahmad Qureshi (“Qureshi”), Capital Reserve Financial Group (“Capital Reserve”) and Capital Investments of America (“Capital Investments”), and Franklin Danny White (“White”), on behalf of himself and WNBC The World Network Business Club Ltd. (“WNBC”) and Mind Management Consulting (“MMCL”), did not appear on February 28, 2008 but advised Staff in writing that they consented to an adjournment to a pre-hearing conference;

      AND WHEREAS having heard submissions from Staff as to the proposed adjournment agreed to by Staff and the respondents, the Commission expressed reservations about scheduling a pre-hearing conference without also setting a date for the hearing on the merits;

      AND WHEREAS the Commission advised Staff that it would be willing to grant a brief adjournment of this matter to allow Staff to canvass potential hearing dates with the respondents;

      AND WHEREAS the Commission ordered that this matter be adjourned to March 18, 2008 at 3:00 p.m. for the purpose of scheduling hearing dates for the hearing on the merits and a pre-hearing conference;

      AND WHEREAS on Tuesday March 18, 2008 Staff and White (for himself, WNBC, and MMCL) appeared at the hearing held and made submissions to the Commission as to proposed dates for the hearing on the merits;

      AND WHEREAS Staff and White advised the Commission that they were content with hearing dates to begin January 12, 2009 and ending on January 23, 2009;

      AND WHEREAS White advised the Commission that he has spoken to Qureshi, who is no longer represented by counsel, and who is representing himself, Capital Reserve and Capital Investments, and Qureshi indicated to White that he agreed to the proposed dates for the hearing on the merits;

      AND WHEREAS on January 12, 2009 Staff, White and his counsel attended before the Commission for the hearing on the merits as scheduled;

      AND WHEREAS on January 12, 2009 Qureshi did not attend at the hearing although given due notice;

      AND WHEREAS on January 12, 2009 White moved for a six-month adjournment of the hearing on the merits on the grounds of mental illness and late disclosure;

      AND WHEREAS on January 12, 2009, Staff opposed the request for a six- month adjournment but agreed that, in light of the medical evidence presented, a short adjournment be given on terms;

      AND WHEREAS the Commission was of the view that the hearing on the merits should proceed at the earliest opportunity;

      AND WHEREAS on January 12, 2009, White and Staff agreed to an adjournment of the hearing on the merits to March 23 to 27, 2009 on the following terms: that White seek immediate treatment and further professional assessment; that White provide to Staff any further reports of any treatment and professional assessment by January 30, 2009; that Staff be entitled to cross-examine the professionals on their reports on February 13, 2009 at 11:00; that White consent to submitting to an independent assessment by a professional chosen by Staff at a time to be agreed upon but in any event prior to February 20, 2009; that any further motion for adjournment sought by White be returnable on March 13, 2009 at 10:00 a.m.; that dates for the continuation, if necessary, of the hearing on the merits be reserved for June 22 to 30, 2009 excluding June 23; and that White consent to the making of a temporary order against him pursuant to s. 127(5);

      AND WHEREAS the Commission approved of the terms outlined above;

      AND HAVING CONSIDERED oral submissions from Staff, and counsel for White, the proposed terms of the adjournment, and White’s consent to the making of a temporary order to expire at the conclusion of the hearing on the merits;

      IT IS HEREBY ORDERED that:

1. the hearing on the merits shall be adjourned to March 23 to 27, 2009, and be continued on June 22 to 30, 2009, excluding June 23, if necessary;

2. pursuant to clause 1 of section 127(1) and section 127(5) and (7) of the Act, White, WNBC, MMCL, and any company controlled by White, are restricted from being registered under the Act until the conclusion of the hearing on the merits;

3. pursuant to clause 2 of section 127(1) and section 127(5) and (7) of the Act, trading in securities of and by White, WNBC, MMCL, and any company controlled by White, shall cease until the conclusion of the hearing on the merits;

4. pursuant to clause 3 of section 127(1) and section 127(5) and (7) of the Act, any exemptions contained in Ontario securities law do not apply to any of White, WNBC, MMCL, or any company controlled by White until the conclusion of the hearing on the merits; and

5. White, to the extent he is deemed a Market Participant as defined in the Act, shall not provide any release, report, preliminary prospectus, prospectus, return, financial statement, information circular, take-over bid circular, issuer bid circular, offering memorandum, proxy solicitation to any person or company until the conclusion of the hearing on the merits.

DATED at Toronto this 15th day of January 2009.

" Patrick J. LeSage "
Patrick J. LeSage
" Suresh Thakrar "
Suresh Thakrar


" Kevin J. Kelly "
Kevin J. Kelly