Order: In the Matter of Quadrexx Hedge Capital Management Ltd. et al.

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

- AND -

IN THE MATTER OF QUADREXX HEDGE CAPITAL MANAGEMENT LTD., QUADREXX SECURED ASSETS INC., MIKLOS NAGY and TONY SANFELICE

ORDER

WHEREAS:

1. On January 31, 2014, the Ontario Securities Commission (the “Commission”) issued a Notice of Hearing dated January 31, 2014 (the “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”) accompanied by a Statement of Allegations dated January 30, 2014 (the “Statement of Allegations”) with respect to Quadrexx Hedge Capital Management Ltd. (“QHCM”), Quadrexx Secured Assets Inc. (“QSA”), Miklos Nagy (“Nagy”) and Tony Sanfelice (“Sanfelice”) (collectively, the “Respondents”);
2. On February 20, 2014, Staff of the Commission (“Staff”) filed an affidavit of Sharon Nicolaides sworn February 19, 2014 setting out Staff’s service of the Notice of Hearing and the Statement of Allegations on counsel for the Respondents; 
3. On February 20, 2014, Staff advised that Staff had sent out the initial electronic disclosure of approximately 14,000 documents to counsel for the Respondents;
4. On February 20, 2014, the Commission ordered that the hearing be adjourned to April 17, 2014 at 9:30 a.m. for the purpose of scheduling a date for a confidential pre-hearing conference as may be appropriate;
5. On April 17, 2014, Staff, counsel for QHCM, QSA and Nagy and counsel for Sanfelice attended before the Commission;
6. On April 17, 2014, Staff advised the Commission of a correction to be made regarding  the initial electronic disclosure made on February 20, 2014, in that disclosure was made of approximately 14,000 pages of documents rather than of approximately 14,000 documents;   
7. On April 17, 2014, Staff further advised the Commission that it had recently sent out electronic disclosure of a further 6,800 pages of documents and advised that disclosure by Staff was not yet complete;
8. On April 17, 2014, the Commission ordered that the hearing be adjourned to a confidential pre-hearing conference to be held on September 5, 2014 at 10:00 a.m;
9. On August 20, 2014, Nagy’s counsel advised the Commission that Nagy was no longer available to attend the pre-hearing conference scheduled for September 5, 2014 as he would be out of the country until September 19, 2014 because of the ailing health of a family member living abroad and that Nagy’s counsel was not available thereafter until the week of October 13, 2014;
10. On August 20, 2014, on the consent of the Respondents and Staff, the Commission ordered that the confidential pre-hearing conference scheduled for September 5, 2014 be adjourned to October 15, 2014 at 9:00 a.m;
11. On October 15, 2014, the parties attended a confidential pre-hearing conference in this matter;
12. On October 15, 2014, the Commission ordered that:
    1. this matter be adjourned to a further confidential pre-hearing conference to be held on February 26, 2015 at 10:00 a.m; and
    2. the hearing on the merits in this matter shall commence on April 20, 2015 at 10:00 a.m. and shall continue on April 22, 23, 24, 27, 28, 29, 30 and May 1, 4, 6, 7, 8, 11, 12, 13, 14 and 15, 2015, each day commencing at 10:00 a.m;
13. The hearing on the merits in this matter took place on April 22, 23, 24, 27, 28, 29, 30 and on May 1, 4, 6, 7, 8, 11, 12, 13, 14 and 15, 2015 and it was determined on the final day of the hearing that additional hearing dates would be required;
14. On May 28, 2015, the parties attended a case conference in this matter to schedule additional hearing dates to complete the hearing on the merits; and
15. The Commission is of the opinion that it is in the public interest to make this Order;

IT IS ORDERED that the hearing on the merits in this matter shall continue on September 21, 23, 24 (for the morning only), 25, 28, 29 and 30, on October 1, 2, 5 and 9 and on November 16, 18, 19, 20, 23, 24 and 25, 2015, each day commencing at 10:00 a.m.
     

DATED at Toronto this 3rd day of June, 2015.