Order: In the Matter of Edward Furtak et al.

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

- AND -

IN THE MATTER OF EDWARD FURTAK, AXTON 2010 FINANCE CORP., STRICT TRADING LIMITED, RONALD OLSTHOORN, TRAFALGAR ASSOCIATES LIMITED, LORNE ALLEN and STRICTRADE MARKETING INC.

ORDER

 WHEREAS:

1. On March 30, 2015 the Ontario Securities Commission (the “Commission”) issued a Notice of Hearing pursuant to sections 127 and 127.1 of the Securities Act, R.S.O. 1990, c. S.5, as amended (the “Act”) in connection with a Statement of Allegations filed by Staff of the Commission (“Staff”) on March 30, 2015 with respect to Edward Furtak, Axton 2010 Finance Corp., Strict Trading Limited, Ronald Oslthoorn, Trafalgar Associates Limited, Lorne Allen and Strictrade Marketing Inc. (collectively, the “Respondents”);
2. On April 27, 2015, counsel for each of Staff and the Respondents appeared before the Commission for a First Appearance and made submissions;
3. On April 27, 2015, the Commission ordered that:
1. The Respondents’ motion with respect to the bifurcation of the Commission proceeding would be heard on Wednesday, June 24, 2015 at 10:00 a.m.;
2. The timing for the delivery of Staff’s witness list, witness statements and an indication of Staff’s intent to call an expert witness would be determined by the panel hearing the motion; and
3. The Second Appearance would be held on Monday, September 28, 2015 or as soon thereafter as the hearing can be held;
4. On June 24, 2015, the Commission heard oral submissions from counsel for each of the Respondents and Staff and reviewed the materials submitted by the parties for the motion on bifurcating the hearing;
5. On June 24, 2015, the Commission ordered that:
1. The  Respondents’ motion to bifurcate the hearing on the merits was dismissed;
2. Any motions with respect to Staff’s disclosure should be brought by the Respondents by Friday, September 18, 2015; and
3. Staff should provide Staff’s list of witnesses and witness statements and indicate whether it is Staff’s intention to call an expert witness by Wednesday, September 23, 2015;
6. On September 28, 2015, Counsel for Staff and counsel for the Respondents appeared before the Commission for a Second Appearance, and made submissions;
7. On September 28, 2015, the Commission ordered that:
1. The Respondents would provide the Respondents’ list of witnesses and summaries, and indicate whether it is the Respondents’ intention to call an expert witness by Monday, October 26, 2015;
2. The Third Appearance would be held on Wednesday, November 25, 2015 at 2:00 p.m.,  or as soon thereafter as the hearing can be held; and
3. At the Third Appearance, counsel for the Respondents would advise the Commission on the outcome of steps taken to address the issue, if any, of her representation of all of the Respondents at the hearing on the merits;
8. On November 25, 2015, counsel for Staff and counsel for the Respondents appeared before the Commission for a Third Appearance, and made submissions;
9. On November 25, 2015, the Commission ordered that:
1. On Wednesday, March 9, 2016, Staff would serve Staff’s expert report on the Respondents in accordance with the Commission’s Rules of Procedure;
2. On Monday, March 28, 2016, the parties would exchange Hearing Briefs, containing those documents which they intend to produce or enter as evidence at the Merits Hearing;
3. On  Monday, April 4, 2016, the parties would exchange and file copies of indices of their Hearing Briefs with the Commission;
4. On Friday, April 8, 2016, the Respondents would serve their responding expert report on Staff in accordance with the Commission’s Rules of Procedure;
5. The final interlocutory appearance would occur on Monday, April 11, 2016 at 9:00 a.m.; and
6. The hearing on the merits would commence on Monday, May 9, 2016 at 10:00 a.m. and continue on May 10, 12, 13, 16, 18, 27 and 30, 2016;
10. On January 27, 2016, counsel for the Respondents requested another date for the hearing of the final interlocutory appearance due to a scheduling conflict;
11. On February 2, 2016, the Commission ordered that:
1. The date scheduled for the final interlocutory appearance of Monday, April 11, 2016 at 9:00 a.m. was vacated; and
2. The final interlocutory appearance would occur on Thursday, April 14, 2016;
12. On Thursday, April 14, 2016, counsel for Staff and counsel for the Respondents appeared before the Commission for the final interlocutory appearance, and made submissions on the application of Rule 4.5 of the Ontario Securities Commission Rules of Procedure (2014), 37 O.S.C.B. 4168 to the Respondents; and
13. The Commission is of the opinion that it is in the public interest to make this Order, with reasons to follow;

IT IS HEREBY ORDERED that:

1. By 4:00 p.m. on April 22, 2016, the Respondents shall provide a written witness summary to Staff for each party and non-party witness that the Respondents intend to call to testify that contains:
1. The substance of the evidence each party and non-party witness intends to give; and
2. Reference to any documents that each party and non-party witness will refer to in their evidence.

DATED at Toronto this 14th day of April, 2016.