Statement of Allegations: In The Matter of Daniel Duic

IN THE MATTER OF THE SECURITIES ACT

R.S.O. 1990, c.S.5, AS AMENDED

AND

IN THE MATTER OF DANIEL DUIC

STATEMENT OF ALLEGATIONS

Staff of the Ontario Securities Commission ("Staff") make the following allegations:

1. Daniel Duic is an individual resident of Toronto, Ontario.

2. Andrew Rankin was the Managing Director in the Mergers and Acquisitions Department of RBC Dominion Securities from early 1999 to mid-2001. In his former position at RBC DS, Rankin was privy to and possessed confidential material information about pending mergers and acquisition transactions of various reporting issuers in Ontario. On April 4, 2001, RBC DS announced an investigation of certain suspicious trading activities. As a result of this investigation, on April 23, 2001 the firm announced that it had suspended Rankin without pay. On June 15, 2001, RBC DS terminated the employment of Rankin.

3. Duic is a close friend of Rankin and has been close friends with him for some twenty years.

4. Between October, 1999 and March 2001, Rankin told Duic confidential information concerning material facts or material changes of Ontario reporting issuers not generally disclosed that Rankin had learned as a result of his fiduciary position at RBC DS. The material fact or change related to a pending merger and acquisition transaction about certain reporting issuers. Rankin had knowledge of these transactions in advance of their being publicly announced in that RBC DS was acting as an advisor to one of the parties or proposed parties in each of the merger or acquisition transactions.

5. Based upon the confidential information divulged by Rankin and during this period, Duic bought securities of reporting issuers in Ontario in advance of the public announcement of their respective merger and acquisition transactions. In particular, Duic bought securities of Canadian Pacific Limited and Moffat Communications Limited, among others.

6. At the time Duic purchased the securities, the confidential information concerning the material fact or material change had not been generally disclosed to the public.

7. For each of the merger and acquisition transactions, RBC DS and Rankin possessed confidential information concerning material facts or material changes of reporting issuers in that the Mergers and Acquisitions Department of RBC DS was the advisor to one of the parties, or to one of the proposed parties in the merger and acquisition transaction. For each company, the material fact or material change was the pending merger and acquisition transaction.

8. Particulars of the securities which Duic purchased in Canadian Pacific and Moffat Communications (hereinafter collectively defined as "the Companies") are as follows:

Canadian Pacific Limited

Canadian Pacific Limited (call options - Feb 42.5)

Canadian Pacific Limited (call options - Feb 45)

Canadian Pacific Limited (call options - Mar 42.5)

Canadian Pacific Limited (call options - Apr 45)

Moffat Communications Limited

9. After the public announcement, the value of the securities of the Companies increased in value. Immediately thereafter, Duic sold some of the securities of the Companies to realize a profit of $1,292,023 and an unrealized gain of $600,075 for the remaining securities which he held.

10. Duic, for the most part, traded the securities using a pseudonym and through off-shore accounts in a number of jurisdictions.

11. At the time that Rankin told Duic of the material facts or material changes, he was the Managing Director of the Mergers and Acquisitions Department of RBC DS. As such, Rankin was a person in a special relationship for each of the Companies as defined in s. 76(5)(b) of the Securities Act.

12. In that Duic then possessed the material facts or material changes not generally disclosed to the public, Duic was also in a special relationship with each of the Companies at the material time as defined in s. 76(5)(e) of the Act.

13. Duic, as a person in a special relationship with each of the Companies, sold securities of each of the Companies with knowledge of a material fact or a material change that had not been generally disclosed. Accordingly, Duic breached s. 76(1) of the Act.

14. Such additional allegations as Staff may submit and the Commission may permit.