The Ontario Securities Commission has adjourned the first appearance of James Patrick Boyle, Lawrence Melnick and John Michael Malone to October 27.

It is alleged that Boyle, as chief architect of the scheme, along with Melnick and Malone, engaged in unregistered trading and unlawful distributions of securities for Complex Minerals Inc., GoldMint Explorations Limited and Nucanolan Resources Limited.

The creation of tradeable securities was achieved through a series of non-cash transactions, and through improper and abusive reliance on the provisions of the Ontario Securities Act, R.S.O. 1990, c.S.5, as amended, including exemptions to registration and prospectus requirements, the OSC has alleged.

More than 24 million securities in Complex, GoldMint and Nucanolan were distributed to the broker dealers A.C. MacPherson & Co. Inc., J.M. Charter Securities Inc. and Arlington Securities Inc. which in turn sold the securities to members of the public, the OSC alleges.

The sale of the securities to members of the public generated funds, a significant proportion of which were ultimately transferred to Boyle, Melnick and Melnick’s private company, Gobitan Systems Inc. The majority of the proceeds obtained by Boyle and Melnick personally were directed through an Antiguan company, First Mulmur Corp., the commission alleges.

Boyle received approximately $1.83 million and Melnick and Gobitan received approximately $1.47 million, it is alleged. Malone received $6,500.00 as a result of his participation in the course of conduct, alleges the OSC. The last payout of the proceeds was in 2002.