Proceedings

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

- AND -

STANKO JOSEPH GRMOVSEK AND GIL I. CORNBLUM


ORDER
(sections 127 and 127.1)



      WHEREAS on October 23, 2009, the Commission issued a Notice of Hearing pursuant to section 127 and 127.1 of the Securities Act R.S.O. 1990 c.S. 5 as amended (the “Act”), accompanied by the Statement of Allegations of Staff of the Commission, in relation to the Respondents, Stanko Joseph Grmovsek (“Grmovsek”) and Gil I. Cornblum (“Cornblum”);

      AND WHEREAS the Grmovsek entered into a Settlement Agreement with Staff of the Commission (“Staff”) dated October 25, 2009 (the “Settlement Agreement”) in which he agreed to a settlement of the proceedings commenced by the Notice of Hearing dated October 23, 2009, subject to the approval of the Commission;

      AND UPON reviewing the Settlement Agreement and Staff’s Statement of Allegations, and upon reading the written submissions from Staff and upon hearing submissions from Staff and counsel for Grmovsek;

      AND WHEREAS Grmovsek acknowledges that the facts set out in Part III of the Settlement Agreement constituted a breach of section 76(1) of the Act and conduct contrary to the public interest under the Act;

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

      IT IS HEREBY ORDERED THAT:

      (a) the Settlement Agreement between Grmovsek and Staff is approved;

      (b) pursuant to clause 2 of subsection 127(1) of the Act, Grmovsek shall cease trading in any securities permanently;

      (c) pursuant to clause 2.1 of subsection 127(1) of the Act, Grmovsek shall cease acquisitions of any securities permanently;

      (d) pursuant to clause 3 of subsection 127(1) of the Act, any exemptions in Ontario securities law do not apply to Grmovsek permanently;

      (e) pursuant to clause 8 of subsection 127(1) of the Act, Grmovsek is prohibited from becoming an officer or director of an issuer permanently;

      (f) pursuant to clause 8.2 of subsection 127(1) of the Act, Grmovsek is prohibited from becoming an officer or director of a registrant permanently;

      (g) pursuant to clause 8.4 of subsection 127(1) of the Act, Grmovsek is prohibited from becoming an officer or director of an investment fund manager permanently;

      (h) pursuant to clause 8.5 of subsection 127(1) of the Act, Grmovsek is prohibited from becoming an registrant, investment fund manager or promoter permanently;

      (i) pursuant to clause 10 of subsection 127(1) of the Act, Grmovsek shall disgorge to the Commission $750,000 obtained as a result of his non-compliance with Ontario securities law for allocation to or for the benefit of third parties;

      (j) pursuant to clause 10 of subsection 127(1) of the Act, Grmovsek shall disgorge to the Commission $283,000 obtained as a result of his non-compliance with Ontario securities law for allocation to or for the benefit of the Attorney General for Ontario; and

      (k) pursuant to subsection 127.1(1) of the Act, Grmovsek, agrees to pay costs of the investigation in the amount of $250,000 to the Commission.

Dated this 26th day of October, 2009.


" Patrick J. LeSage "