British Columbia Securities Commission is set to probe allegations that Vancouver brokerage Union Securities Ltd. was used as a conduit for illegal stock manipulation in 2000.

In a notice of hearing, the BCSC alleges that jailed U.S. stock promoter Edward Durante controlled accounts at Union that he used in a scheme to manipulate shares of companies listed on the Nasdaq OTC Bulletin Board.

The notice also alleges that Durante had trading authority over the accounts that he exercised through Trevor Keonig, his stockbroker at Union.

From January to March, 2000, US$14.7 million in trading profits from the sale of Wamex Holdings Inc. was transferred from accounts at Union to an account at a Vancouver branch of the Bank of Montreal, the BCSC alleges.

In December, 2001, the notice said, Durante pleaded guilty in a U.S. court to conspiracy to commit securities fraud, wire fraud, money laundering and making false statements. He was sentenced in September 2003, to 120 months in prison, three years on probation and was ordered to make restitution, the notice said.

A date for the hearing will be set on Sept. 8.

BCSC Notice of hearing http://www.bcsc.bc.ca:8080/comdoc.nsf/comdoc.nsf/webpolicies/AB29A114FF7A262388256F010075490A?OpenDocument