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. 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 shall 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 shall 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 will 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,
1. counsel for Staff and counsel for the Respondents appeared before the Commission for a Third Appearance, and made submissions; and
2. the panel informed the parties that after the exchange of expert reports, the parties are invited to contact the Registrar to schedule a confidential pre-hearing conference to address issues, if any, concerning the proposed expert evidence; and
9. The Commission is of the opinion that it is in the public interest to make this Order;

IT IS HEREBY ORDERED that:

1. On or before Wednesday, March 9, 2016, Staff shall serve Staff’s expert report on the Respondents in accordance with the Commission’s Rules of Procedure;
2. On or before Monday, March 28, 2016, the parties shall exchange Hearing Briefs, containing those documents which they intend to produce or enter as evidence at the Merits Hearing;
3. On or before  Monday, April 4, 2016, the parties shall exchange and file copies of indices to their Hearing Briefs with the Commission;
4. On or before Friday, April 8, 2016, the Respondents shall serve their responding expert report on Staff in accordance with the Commission’s Rules of Procedure;
5. The final interlocutory appearance will occur on Monday, April 11, 2016 at 9:00 a.m.;
6. The hearing on the merits will commence on Monday, May 9, 2016 at 10:00 a.m. and continue on May 10, 12, 13, 16, 18, 27 and 30, 2016, or as soon thereafter as the hearing can be held.

DATED at Toronto this   25th   day of November, 2015