Order: In the Matter of Quadrexx Hedge Capital Management Ltd. et al.

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

- AND -

IN THE MATTER OF QUADREXX HEDGE CAPITAL MANAGEMENT LTD., QUADREXX SECURED ASSETS INC., MIKLOS NAGY and TONY SANFELICE

ORDER
(Rule 9 of the OSC Rules of Procedure)

WHEREAS on January 31, 2014, 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”) accompanied by a Statement of Allegations dated January 30, 2014 with respect to Quadrexx Hedge Capital Management Ltd. (“QHCM”), Quadrexx Secured Assets Inc. (“QSA”), Miklos Nagy (“Nagy”) and Tony Sanfelice (“Sanfelice”) (collectively, the “Respondents”);

AND WHEREAS on February 20, 2014, Staff of the Commission (“Staff”) filed an affidavit of Sharon Nicolaides sworn February 19, 2014 setting out Staff’s service of the Notice of Hearing dated January 31, 2014 and Staff’s Statement of Allegations dated January 30, 2014 on counsel for the Respondents; 

AND WHEREAS on February 20, 2014, Staff advised that Staff sent out the initial electronic disclosure of approximately 14,000 documents to counsel for the Respondents;

AND WHEREAS on February 20, 2014, the Commission ordered the hearing be adjourned to April 17, 2014 at 9:30 a.m. for the purpose of scheduling a date for a confidential pre-hearing conference as may be appropriate;

AND WHEREAS on April 17, 2014, Staff, counsel for QHCM, QSA and Nagy and counsel for Sanfelice attended before the Commission;

AND WHEREAS on April 17, 2014, Staff advised the Commission of a correction to be made regarding the initial electronic disclosure made on February 20, 2014, in that disclosure was made of approximately 14,000 pages of documents rather than of approximately 14,000 documents;   

AND WHEREAS on April 17, 2014, Staff further advised the Commission that it had recently sent out electronic disclosure of a further 6,800 pages of documents and advised that disclosure by Staff is not yet complete;

AND WHEREAS on April 17, 2014, the Commission ordered that the hearing be adjourned to a confidential pre-hearing conference to be held on September 5, 2014 at 10:00 a.m;

AND WHEREAS on August 20, 2014, Nagy’s counsel advised the Commission that Nagy was no longer available to attend the pre-hearing conference scheduled for September 5, 2014 as he would be out of the country until September 19, 2014 because of the illness of a family member living abroad and that Nagy’s counsel was not available thereafter until the week of October 13, 2014;

AND WHEREAS Nagy requests an adjournment of the pre-hearing conference to October 15, 2014 and the other Respondents and Staff consent to the adjournment;

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

IT IS HEREBY ORDERED that the confidential pre-hearing conference scheduled for September 5, 2014 shall be adjourned to October 15, 2014 at 9:00 a.m.

DATED at Toronto this 20^th day of August, 2014.