Temporary Order: In the Matter of Carlton Ivanhoe Lewis et al.

 

 

 

 

 

 

 

 

WHEREAS on March 11, 2009 the Ontario Securities Commission (the “Commission”) made a Temporary Order pursuant to subsections 127(1) and (5) of the Securities Act RSO 1990 c S.5 (the “Act”) that (a) pursuant to clause 2 of subsection 127(1) of the Act all trading in securities of MSI Canada Inc., Prosporex Investment Club Inc. and Dominion Investments Club Inc. shall cease; (b) pursuant to clause 2 of the subsection 127(1) of the Act trading in any securities by all of the respondents shall cease; and (c) pursuant to clause 3 of subsection 127(1) of the Act any exemptions contained in Ontario securities law do not apply to the respondents (the “Temporary Order”);

 

 

AND WHEREAS on March 24, 2009 the Commission ordered that the Temporary Order of March 11, 2009 be extended to July 24, 2009, subject to an exception concerning the respondent Sedwick Hill;

AND WHEREAS, on July 23, 2009 the Commission extended the Temporary Order to November 25, 2009 and adjourned the hearing to November 24, 2009 at 2:30 p.m.;

AND WHEREAS on August 25, 2009 the Commission varied the Temporary Order to remove the exception that had applied to the respondent Sedwick Hill and extended the Temporary Order, as varied to November 24, 2009;

AND WHEREAS on November 24, 2009 the Commission added Prosporex Forex SVP Trust as a respondent, extended the Temporary Order, as varied to January 18, 2010 and adjourned the hearing to January 15, 2010 at 10:00 a.m.;

AND WHEREAS on January 15, 2010 the Commission extended the Temporary Order to March 26, 2010 and adjourned the hearing to March 25, 2010 at 10:00 a.m;.

AND WHEREAS on March 12, 2010, Staff issued Statements of Allegations and Notices of Hearing in the following matters:

1. with respect to Albert Leslie James (formerly identified as Albert James in the Temporary Order), Ezra Douse and Dominion Investments Club Inc.;
2. with respect to Wilton J. Neale (formerly identified as Wilton John Neale in the Temporary Order), Multiple Streams of Income (MSI) Inc. (formerly identified as MSI Canada Inc. in the Temporary Order) and 360 Degree Financial Services Inc.; and
3. with respect to Carlton Ivanhoe Lewis, Mark Anthony Scott, Sedwick Hill, Leverage Pro Inc. (formerly identified as LeveragePro Inc. in the Temporary Order), Prosporex Investments Club Inc., Prosporex Investments Inc., Prosporex Ltd., Prosporex Inc., Prosporex Forex SPV Trust, Networth Financial Group Inc., and Networth Marketing Solutions;

AND WHEREAS the Commission held a hearing in this matter on March 25, 2010;

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

AND WHEREAS by Commission order made August 31, 2009, pursuant to subsection 3.5(3) of the Act, each of W. David Wilson, James E.A. Turner, David L. Knight, Carol S. Perry, Patrick LeSage, James D. Carnwath and Mary Condon, acting alone, is authorized to make orders under subsection 127(8) of the Act;

IT IS ORDERED THAT that:

1. the Temporary Order insofar as it relates to the above-named respondents is extended to May 14, 2010;
2. a hearing in this proceeding if necessary, will take place commencing on May 13, 2010 at 10:00 a.m.;
3. a pre-hearing conference with respect to the above-named respondents will take place on May 5, 2010 at 12:00 p.m.;
4. pursuant to subsections 127(1) and (2) of the Act, notwithstanding the Temporary Order, Sedwick Hill is permitted to trade securities for the account of his registered retirement savings plans (as defined in the Income Tax Act (Canada)) in which he has sole legal and beneficial ownership, provided that:
   1. he shall provide Staff with the particulars of the account (before any trading in the account under this order occurs) including the name of the registered dealer or intermediary through which the trading will occur and the account number, and he shall instruct the registered dealer or intermediary to provide copies of all trade confirmation notices with respect to the account directly to Staff at the same time that such notices are provided to him;
5. it is understood that where counsel are acting for respondents, an undertaking related to disclosure will be provided to Staff, and disclosure by Staff to any unrepresented respondents in this proceeding shall be subject to the following restrictions:
   1. Staff shall provide the unrepresented respondents with reasonable opportunity for inspection of the electronic database containing Staff disclosure (hereinafter the “Electronic Database”) at Staff’s offices and subject to supervision by Staff;
   2. except with the express consent of Staff or by order of the Commission, no one other than the unrepresented respondents shall view the Electronic Database;
   3. the Electronic Database will not be electronically copied;
   4. the Electronic Database shall not be hard copied except for the purpose of enabling the unrepresented respondents to make full answer and defence in this proceeding;
   5. upon the completion of the proceeding and any appeal, the unrepresented respondents will return to Staff any and all hard copies made by him or them;
   6. the Electronic Database and the information contained therein shall not be used or disseminated except for the purpose of making full answer and defence to the allegations made against the unrepresented respondents in this proceeding and any appeal therefrom, and shall not be used for any collateral or ulterior purpose;
   7. the Electronic Database to the extent not filed and admitted in this proceeding shall be governed by Section 17 of the Act, as well as the implied undertaking rule, and shall not be used by the unrepresented respondents in any other regulatory, criminal or civil proceeding; and
   8. the unrepresented respondents may return to the Commission upon reasonable notice to Staff if any problems arise concerning his or their access to information on the Electronic Database.

DATED at Toronto this 26^th day of March, 2010.