Order: In the Matter of Ronald James Ovenden et al.

Order

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

- AND -

IN THE MATTER OF RONALD JAMES OVENDEN. NEW SOLUTIONS CAPITAL INC., NEW SOLUTIONS FINANCIAL CORPORATION AND NEW SOLUTIONS FINANCIAL (II) CORPORATION

ORDER
(Subsections 127(1), 127(7) and 127(8))



        WHEREAS on April 11, 2012, the Ontario Securities Commission (the “Commission”) issued an order (the “Temporary Order”) pursuant to subsections 127(1) and 127(5) of the Securities Act, R.S.O. 1990, c. S.5, as amended (the “Act”) that:

  1. all trading in the securities of New Solutions Financial Corporation (“NSFC”), New Solutions Financial (II) Corporation (“NSFII”), New Solutions Financial (III) Corporation (“NSFIII”) and New Solutions Financial (VI) Corporation (“NSFVI”) shall cease immediately;
  2. New Solutions Capital Inc. (“NSCI”), NSFC, NSFII, NSFIII, NSFVI, their employees, representatives and Ronald James Ovenden (“Ovenden”) shall cease trading in all securities of NSFC, NSFII, NSFIII and NSFVI immediately; and
  3. any exemptions contained in Ontario securities law do not apply to NSCI, NSFC, NSFII, NSFIII, NSFVI, their employees and representatives and Ovenden;

        AND WHEREAS on April 18, 2012, the Commission issued a Notice of Hearing to consider, among other things, the extension of the Temporary Order, to be held on April 25, 2012 at 2:00 p.m.;

        AND WHEREAS on April 25, 2012, Staff appeared before the Commission and no one appeared on behalf of any of the respondents;

        AND WHEREAS on April 25, 2012, upon hearing submissions from Staff and upon being advised by Staff that NSFC, NSFII, NSFIII and NSFVI did not oppose the extension of the Temporary Order and Ovenden took no position on the extension of the Temporary Order, the Commission ordered that the hearing in this matter be adjourned to October 11, 2012 at 9:00 a.m. or to such other date or time as set by the Office of the Secretary and agreed to by the parties and that the Temporary Order be extended for a period of 6 months, until October 12, 2012;

        AND WHEREAS on October 11, 2012, Staff and counsel to NSFC, NSFII, NSFIII and NSFVI appeared and no on appeared on behalf of NSCI and Ovenden;

        AND WHEREAS Staff noted that paragraph 8 of the Temporary Order should have provided that only NSCI and Ovenden, as registrants, may have failed to deal fairly, honestly and in good faith with their clients, contrary to section 2.1 of Ontario Securities Commission Rule 31-505 and NSCI, NSFC, NSFII, NSFIII, NSFVI and Ovenden may have engaged in conduct that is contrary to subsections 44(2) and 126.1 of the Act;

        AND WHEREAS on hearing submissions from Staff and counsel to NSFC, NSFII, NSFIII and NSFVI and on being advised by Staff that NSCI and Ovenden did not oppose the extension of the Temporary Order, the Commission ordered that the hearing in this matter be adjourned to May 9, 2013 at 10:00 a.m. or to such other date or time as set by the Office of the Secretary and agreed to by the parties and that the Temporary Order be extended until May 10, 2013;

        AND WHEREAS on March 28, 2013 the Commission issued a Notice of Hearing pursuant to sections 127 and 127.1 of the Act in respect of Ovenden, NSCI, NSFC and NSFII and Staff filed a Statement of Allegations (the “Statement of Allegations”);

AND WHEREAS NSFIII and NSFVI are not named in the Notice of Hearing dated March 28, 2013 nor in the Statement of Allegations;

        AND WHEREAS NSFC and NSFII entered into a Settlement Agreement dated March 28, 2013 (the “Settlement Agreement”) in relation to certain matters set out in the Statement of Allegations;

        AND WHEREAS on April 1, 2013 the Commission issued a Notice of Hearing in respect of the Settlement Agreement;

        AND WHEREAS by order dated April 10, 2013 the Commission approved the Settlement Agreement;

        AND WHEREAS pursuant to the Notice of Hearing dated March 28, 2013, an attendance before the Commission was held on May 1, 2013;

        AND WHEREAS upon reviewing the Notice of Hearing dated March 28, 2013, the Statement of Allegations, and the affidavit of Tia Faerber sworn April 25, 2013, and upon considering the submissions of counsel to Ovenden and of Staff, no one appearing for NSCI although duly served in accordance with the Commission’s Rules of Procedure, the Commission ordered that the hearing (the “Merits Hearing”) be adjourned to August 1, 2013 at 10:00 a.m.;

        AND WHEREAS on May 1, 2013, Staff appeared before the Commission and advised that on May 9, 2013, a further extension of the Temporary Order would be sought until the completion of the Merits Hearing;

        AND WHEREAS Staff further advised that counsel to Ovenden and NSCI indicated that Ovenden and NSCI do not oppose a further extension of the Temporary Order until the completion of the Merits Hearing;

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

        IT IS HEREBY ORDERED that:

  1. The Temporary Order is vacated as against NSFC, NSFII, NSFIII and NSFVI;
  2. The hearing in this matter is adjourned to the completion of the Merits Hearing or to such other date or time as set by the Office of the Secretary and agreed to by the parties; and
  3. The Temporary Order shall be extended until the completion of the Merits Hearing.

DATED at Toronto this 9th day of May, 2013.

 

" James E. A. Turner "
James E. A. Turner