Order: In the Matter of Land Banc of Canada Inc. et al.

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

- AND -

IN THE MATTER OF

LAND BANC OF CANADA INC., LBC MIDLAND I CORPORATION,
FRESNO SECURITIES INC., RICHARD JASON DOLAN,
MARCO LORENTI, AND STEPHEN ZEFF FREEDMAN

ORDER

SECTION 126 and 127

WHEREAS on the 23rd day of April, 2007, the Ontario Securities Commission (the "Commission") ordered, pursuant to clause 2 of subsection 127(1) and subsection 127(5) of the Securities Act, R.S.O. 1990, c. S.5, as amended (the "Act") that all trading by Land Banc of Canada (“LBC”), LBC Midland I Corporation (“Midland”), Fresno Securities Inc. (“Fresno”), Richard Jason Dolan (“Dolan”) , Marco Lorenti (“Lorenti”) and Stephen Zeff Freedman (“Freedman”), (the "Respondents”), in any securities of Midland or any other corporation controlled by LBC, Dolan or Lorenti shall cease (the "Temporary Order");

AND WHEREAS the Commission further ordered as part of the Temporary Order that pursuant to clause 3 of subsection 127(1) and subsection 127(5) of the Act that any exemptions contained in Ontario securities law do not apply to the Respondents;

AND WHEREAS on the 23 rd day of April, 2007, the Commission issued a Direction under s.126(1) of the Act to the Bank of Montreal branch at 2851 John St., in Markham, Ontario (the “BMO Markham Branch”) to retain all funds, securities or property on deposit in the name of or otherwise under control of Midland at the BMO Markham Branch (the “Direction”);

AND WHEREAS on the 30 th of April, 2007 the Direction was continued on consent at the Superior Court of Justice (the “Court”) until further notice of the Court but without prejudice to Midland to apply to the Commission to vary the Direction under s.126(7);

AND WHEREAS on May 1, 2007, the Commission issued a Notice of Hearing and Statement of Allegations in this matter;

AND WHEREAS on May 8, 2007, the Commission continued the Temporary Order against LBC, Midland, Dolan and Lorenti with certain amendments respecting Dolan and Lorenti;

AND WHEREAS upon submissions from counsel for Staff of the Commission and from counsel for Dolan and Lorenti;

AND WHEREAS the Commission is of the opinion that it is in the public interest to make this order;

IT IS ORDERED THAT

1. the Temporary Order is continued until June 29, 2007 against LBC, Midland, Dolan and Lorenti with the following amendments respecting Dolan and Lorenti, until further order of the Commission;

2. Dolan shall be permitted to trade in securities listed on a recognized exchange, including mutual fund units, only in his own existing account(s) and through a dealer registered with the Commission;

3. Lorenti shall be permitted to trade in securities listed on a recognized exchange, including mutual fund units, only in his own existing account(s) through a dealer registered with the Commission;

4. the Direction is continued until June 29, 2007 subject to the payment of expenses related to Midland as set out in Schedule A or as subsequently agreed to by Staff in writing; and

5. this Order shall not effect the right of LBC, Midland, Dolan and Lorenti to apply to the Commission to clarify or revoke the Temporary Order or Direction prior to June 29, 2007 upon three days notice to Staff of the Commission.

Dated at Toronto this 17 th day of May, 2007

- AND -

IN THE MATTER OF

LAND BANC OF CANADA INC., LBC MIDLAND I CORPORATION,
FRESNO SECURITIES INC., RICHARD JASON DOLAN,
MARCO LORENTI, AND STEPHEN ZEFF FREEDMAN

ORDER
SECTION 126 and 127

SCHEDULE A  

WHEREAS Staff has been informed by Dolan and Lorenti that the following payments are necessary for the operation of Midland;

AND WHEREAS Staff has been informed by Dolan and Lorenti that they will receive no part of the following payments in compensation for their activities in the ongoing business operation of Midland;

Staff consents to the payment of the following expenses from the account of Midland at the BMO Markham Branch:  

1. Payment of $5,000 to Land Banc of Canada Inc. for reimbursement of a payment made to Umesh Chandrahalli;
2. Payment of $10,000 to Land Banc of Canada Inc. for business expenses of Midland.
3. Payment of $7,500 to Dolan and $7,500 to Lorenti for legal fees incurred in relation to the Temporary Order and the Direction;
4. Payment of $12,138.06 to Daniela Iamundo for employment services rendered on behalf of Midland;
5. Payment of $40,000 to Ittihad Securities, a limited marker dealer registered with the Commission, for ongoing work on behalf of Midland; and
6. Payment of $39,805.51 to Citigroup for expenses incurred on behalf of Midland.