The Superior Court of Justice issued an endorsement on Nov. 14, approving the appointment of KPMG as receiver and manager of all the property and assets of ASL Direct Inc. (ASL).

Earlier this month, the Ontario Securities Commission (OSC) filed an application with the court seeking an order to appoint a receiver for ASL.

The application followed a full statement of allegations against ASL that the OSC released in May. In the statement, the OSC alleged that ASL and its principal Adrian Leemhuis distributed the Future Growth Group of Funds without a receipted prospectus and without an exemption from the requirement for one.

It also alleged that the Future Growth Group of Funds have traded their securities without a prospectus and without an exemption from the requirement for one. In addition, Leemhuis and ASL have made materially misleading statements in documents and failed to meet the standard of conduct required of a MFDA member and therefore acted contrary to the public interest, according to the statement.

These allegations came after the OSC issued Temporary Cease Trade Orders in April, respecting ASL, Adrian Leemhuis, and Future Growth Group of Funds. Those orders have been extended to Dec. 1, 2008 and were obtained in the course of investigations conducted by staff of the OSC, the Autorité des marchés financiers (Québec) and the MFDA.

The MFDA has initiated its own proceeding against ASL and Leemhuis.