Temporary Order: In the Matter of Axcess Automation LLC et al.

 

 

 

 

WHEREAS on April 15, 2009, the Ontario Securities Commission (the “Commission”) issued a temporary order (the “Temporary Order”) pursuant to sections 127(1) and 127(5) of the Ontario Securities Act, R.S.O. 1990, c. S-5 (the “Act”) in relation to Axcess Automation LLC (“Axcess”), Axcess Fund Management, LLC (“Axcess Fund Management”), Axcess Fund, L.P. (“Axcess Fund”), Gordon Alan Driver (“Driver”) and David Rutledge (“Rutledge”);

AND WHEREAS the Temporary Order was issued based on the appearance of the following:

 

 

 

 

 

1. Axcess is a Nevada corporation located in Mission Viejo, California and has never been a reporting issuer in Ontario nor registered to trade in securities in Ontario;
2. Axcess Fund Management is a Nevada limited liability company registered with the United States Commodity Futures and Trading Commission as a Commodity Pool Operator;
3. Axcess Fund Management has never been a reporting issuer in Ontario nor is it registered to trade in securities in Ontario;
4. Axcess Fund is a purported hedge fund operated by Axcess Fund Management;
5. Driver is a Canadian citizen who resides in both Ontario and Las Vegas, Nevada and has never been registered to trade in securities in Ontario;
6. Rutledge is an Ontario resident and has never been registered to trade in securities in Ontario;
7. Axcess, Axcess Fund Management, Axcess Fund, Driver and Rutledge may have solicited investments from Ontario and United States residents totalling between $5 million and $10 million;
8. Axcess, Axcess Fund Management, Axcess Fund, Driver and Rutledge may have traded in securities without being registered to do so, contrary to section 25 of the Act;

AND WHEREAS Steven M. Taylor (“Taylor”) is an Ontario resident and has never been registered to trade in securities in Ontario;

AND WHEREAS International Communication Strategies (“ICS”) appears to be a company which is registered in Panama and controlled by Taylor, and has never been a reporting issuer in Ontario nor registered to trade in securities in Ontario;

AND WHEREAS based on information obtained by Staff of the Commission, it appears to the Commission that Taylor and ICS may have solicited investments from investors in Ontario in relation to Axcess, Axcess Fund Management, Axcess Fund and Driver;

AND WHEREAS it appears to the Commission that Taylor and ICS may have traded in securities without being registered to do so, contrary to section 25 of the Act;

AND WHEREAS the Commission is of the opinion that the time required to conclude a hearing could be prejudicial to the public interest as set out in section 127(5) of the Act;

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

AND WHEREAS by Authorization Order made August 31, 2009, pursuant to subsection 3.5(3) of the Act, the Commission authorized each of W. David Wilson, James E. A. Turner, David L. Knight, Carol S. Perry, Patrick J. LeSage, James D. Carnwath and Mary G. Condon, acting alone, to exercise the powers of the Commission to make orders under section 127 of the Act;

IT IS ORDERED pursuant to clause 2 of subsection 127(1) of the Act that all trading by Taylor and ICS shall cease.

IT IS FURTHER ORDERED that pursuant to clause 3 of subsection 127(1) of the Act that the exemptions contained in Ontario securities law do not apply to Taylor and ICS.

IT IS FURTHER ORDERED that pursuant to subsection 127(6) of the Act this order shall take effect immediately and shall expire on the fifteenth day after its making unless extended by order of the Commission.

DATED at Toronto this 2^nd day of October, 2009.

 

 

 

 

 

 

“David Wilson” David Wilson