Order: In the Matter of Bluestream Capital Corporation et al.

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

- and -

IN THE MATTER OF BLUESTREAM CAPITAL CORPORATION,
BLUESTREAM INTERNATIONAL INVESTMENTS INC.,
KROWN CONSULTING CORP., 1859585 ONTARIO LTD. (operating as SOVEREIGN
INTERNATIONAL INVESTMENTS) and PETER BALAZS

ORDER
(Section 127)

WHEREAS on March 12, 2014, 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 relation to a Statement of Allegations filed by Staff of the Commission (“Staff”) on March 11, 2014, to consider whether it is in the public interest to make certain orders against Bluestream Capital Corporation (“Bluestream Capital”), Bluestream International Investments Inc. (“Bluestream International”), Krown Consulting Corp. (“Krown”), 1859585 Ontario Ltd. (operating as Sovereign International Investments) (“Sovereign”) (together, the “Corporate Respondents”) and Peter Balazs (“Balazs”) (together with the Corporate Respondents, the “Respondents”);

AND WHEREAS the Notice of Hearing set a hearing in this matter for April 2, 2014 at 10:00 a.m.;

AND WHEREAS on April 2, 2014, Staff attended the hearing and Balazs attended on his own behalf and on behalf of Bluestream International, Krown, and Sovereign;

AND WHEREAS on April 2, 2014 the Commission ordered that this matter be adjourned to a confidential pre-hearing conference on June 26, 2014 at 10:00 a.m.;

AND WHEREAS on June 26, 2014, Staff attended the confidential pre-hearing conference while no one appeared on behalf of Balazs or the Corporate Respondents, although the Respondents were properly served with notice of the hearing;

AND WHEREAS on June 26, 2014, the Commission ordered that the hearing on the merits in this matter will commence on January 12, 2015 at 10:00 a.m and will continue through January 21, 2015, except for January 13, 2015 (the “June 26 Order”);

AND WHEREAS on December 9, 2014, Staff attended a status update while no one appeared on behalf of Balazs or the Corporate Respondents;

AND WHEREAS Staff filed the Affidavit of Maria Sequeria, sworn August 22, 2014, evidencing service of the June 26 Order on the Respondents;

AND WHEREAS on December 9, 2014, the Commission ordered that the hearing on the merits in this matter will proceed on January 12, 2015 and continue as previously scheduled;

AND WHEREAS the Respondents have failed to attend any hearing in this matter or participate in the proceeding in any way since April 2, 2014, although properly served with proceeding documents;

AND WHEREAS Staff have requested that all or substantially all of the hearing on the merits be converted to a written hearing, pursuant to Rule 11.5 of the Commission’s Rules of Procedure (the “Rules”), in accordance with the schedule set out below;

AND WHEREAS the Respondents have not objected to this matter proceeding as a written hearing, though properly notified by Staff;

AND WHEREAS the Panel considered the submissions of Staff and the Commission is of the opinion that it is in the public interest to make this order;

IT IS HEREBY ORDERED that, pursuant to Rule 11.5 of the Rules, the hearing on the merits shall proceed as a written hearing, in accordance with the following schedule:

1. Staff will file evidence in affidavit form along with written submissions on the relevant facts and law with the Secretary’s Office no later than January 12, 2015;
2. The Respondents will file responding materials, including affidavit evidence and written submissions, no later than February 23, 2015;
3. Staff will file any reply submissions or evidence no later than February 27, 2015;
4. If necessary and requested by any of the parties to the proceeding or the Commission, Staff and the Respondents will attend on a date appointed by the panel after February 27, 2015 to answer questions, make submissions or make any necessary witnesses available for cross-examination.

            DATED at Toronto, this 29th day of December, 2014.